Wells Fargo revealed in an SEC filing that a glitch in the bank’s software denied mortgage modification requests incorrectly, resulting hundreds of customers to lose their homes.
The bank says 400 customers lost their home as the bank foreclosed on the loans.
The bank says, “This error in the modification tool caused an automated miscalculation of attorneys’ fees that were included for purposes of determining whether a customer qualified for a mortgage loan modification. As a result of this error, approximately 625 customers were incorrectly denied a loan modification or were not offered a modification in cases where they would have otherwise qualified.”
Setting aside $8 million, Wells Fargo is planning to compensate customers who were forced out from their homes.