Wells Fargo Home Mortgage will submit supplemental affidavits in about 55,000 pending foreclosures in 23 judicial foreclosure states, saying final reviews of the documents and some aspects of the notarization process did not adhere to company procedures.

Wells Fargo said it was acting "out of an abundance of caution," and that the issues identified were unrelated to quality of the customer and loan data.

Company officials said in a statement they don’t believe "that any of these instances led to foreclosures which should not have otherwise occurred," and the company does not plan to institute a moratorium on foreclosure sales. Wells Fargo hopes to complete the process of submitting supplemental affidavits by mid-November.

At least five other loan servicers — Bank of America, GMAC Mortgage, JP Morgan Chase, PNC Financial Services Group Inc. and Litton Loan Servicing — are reviewing foreclosure filings in 23 states where courts have jurisdiction over the foreclosure process, and some have voluntarily suspended or curtailed foreclosure proceedings in those states.

Bank of America and GMAC Mortgage expanded their reviews to non-judicial foreclosure states, and Bank of America had announced a temporary halt of foreclosure sales in all 50 states on Oct. 8.

Ten days later, Bank of America announced that it would begin resubmitting affidavits in 102,000 pending foreclosures in 23 judicial foreclosure states as of this week, which would allow it to resume foreclosure sales in those states.

Ohio Attorney General Richard Cordray, who this month filed suit against GMAC for allegedly issuing false affidavits in Ohio foreclosure cases, characterized loan servicers’ refiling of affidavits as "brazen efforts to minimize their financial exposure by sweeping these problems under the rug."

"The suggestion by Wells Fargo and its colleagues at several other national firms that they can cure fraudulent testimony by simply refiling new affidavits and continuing to proceed toward foreclosures shows they do not recognize the seriousness of the problem they have created," Cordray said in a statement.

"There is no simple ‘do-over’ for false testimony that will be likely to avoid sanctions and penalties imposed by the courts."

Cordray said Wells Fargo’s announcement will become the focus for a new prong of the state’s ongoing investigation into loan servicers’ foreclosure practices.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Network with CoStar, Redfin, Realogy, SERHANT., Divvy, and thousands more in-person at ICLV this October. Prices go up Sunday.Register Now×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription