But that doesn’t mean 55,000 foreclosures will be rescinded
The first question you have to ask is: What kind of foreclosure errors is Wells Fargo admitting to making?
The answer is somewhat disappointing: Wells Fargo is admitting to “technical” errors. The errors include simply not adhering strictly to the required procedures. In a word: Robo-signers who signed off on foreclosures but never even glanced at the underlying documents to be sure they were accurate.
Wells Fargo admitted late Wednesday that it would be filing supplemental documents to correct the errors. In other words, the foreclosure errors aren’t severe enough to require Wells Fargo to enact a foreclosure freeze. To the contract, Wells Fargo said it found no substantial errors.
While Wells Fargo says the errors were largely procedural, it affirmed that the foreclosures themselves were valid. Wells Fargo has resisted calls for a foreclosure freeze, and in today’s statement against said that the errors that were found weren’t significant enough to impose a foreclosure freeze, or “moratorium.”
“The issues the company has identified do not relate in any way to the quality of the customer and loan data. Nor does the company believe that any of these instances led to foreclosures which should not have otherwise occurred,” the company said in its statement.
For those who are wondering whether the foreclosure freeze will bear glad tidings, the answer is no. In fact, President Obama’s team is fighting hard against a nationwide foreclosure freeze. In their view, questioning whether millions of foreclosures (past, present, and future) are valid is a can of worms no one wants to open.
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