OIG Report on Wells Fargo Foreclosure Practices

The Office of the Inspector General undertook a nationwide effort to review the foreclosure practices of the five largest FHA mortgage servicers including Wells Fargo, Bank of America, CitiMortgage, JP Morgan Chase and Ally Financial (formerly GMAC). As part of the process, a report was issued for each bank separately.

The banks were not aware of the results while the investigation was underway. The reports are different for each servicer given the amount of information the auditors were given access to, differing procedures and processes between the banks and scope limitations imposed by some of the servicers.

In particular, the OIG's review of Wells Fargo's foreclosure and claims processes included procedures for signing and notarizing sworn affidavits used to obtain judgments in foreclosure cases. 

Shockingly, Wells Fargo restricted access to robo-signers and refused to provide information and data in a timely manner. Eventually, access to all 14 affidavit signers (read: robo-signers) was allowed, but only with Wells Fargo management and legal counsel present. Oh, and they were prepped beforehand by legal counsel, before the OIG was able to gain access to them.

Suprisingly, in the process of talking to the 14 robo-signers Wells Fargo identified in their offices, more were uncovered by the OIG - robo-signers not initially identified by Wells Fargo. Eventually 33 of 35 identified foreclosure robo-signers were interviewed under the watchful eye of Wells Fargo mangement and legal counsel.

Results of the Foreclosure / Fraudclosure Inquiry

Here is a brief overview of the results. You should read the entire report on Wells Fargo's foreclosure practices. It's quite entertaining.

  • Robo-signers had no personal knowledge of foreclosure documents or data they were signing
  • Robo-signers signed up to 600 affidavits for foreclosure cases per day
  • Many foreclosure robo-signers had little to no education beyond high school
  • Many foreclosure robo-signers had no banking or real estate knowledge
  • Most robo-signers did not have the qualifications to hold titles such as "vice president of loan documentation," a designation which came with no other authority than to robo-sign foreclosure documents
  • Foreclosure notaries notarized up to 1000 documents and affidavits per day

Make sure you read the results for the other fraudclosure banks:

  • Bank of America
  • CitiMortgage
  • JP Morgan Chase
  • Ally Financial (the newly branded name GMAC is hiding behind)

Events

June 2020
 
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