Automation is supposed to lead to new efficiencies – but not in the case of robo-signers.
Wells Fargo & Co., the nation’s largest mortgage lender, today disclosed that it could soon face regulatory sanctions for it’s shoddy foreclosures practices and that it faces class action litigation that could result in $1.2 billion in losses.
“It is likely that one or more of the government agencies will initiate some type of enforcement action against Wells Fargo, which may include civil money penalties,” the company said in a filing with the U.S. Securities and Exchange Commission.
Wells Fargo, among other banks, is accused of submitting fraudulent documents and affidavits to courts in foreclosure cases on homes. Robo-signers – people the rubber stamp thousands of documents at a time – are often cited as the biggest part of the problem. The other is that the paperwork on a lot of homes sold during the mortgage boom is simply missing.
So it looks like Wells Fargo make a lot of bad home loans, and then got into a lot of bad foreclosures. Can’t it get anything right?