Wells Fargo probed over foreclosure papers

Pointing Finger

New York Attorney General Eric Schneiderman and three major regulators are investigating allegations made in a federal court case that Wells Fargo has set up detailed internal procedures to fabricate foreclosure papers on demand.

The New York Post reports that a spokesman for Wells Fargo denied the allegations. He said the manual excludes details of the bank’s internal procedures and checkpoints, which would demonstrate that the bank has not engaged in any misconduct.

'Wells Fargo’s foreclosure processes — today and back in 2012 — are appropriate (and) legal. To allege otherwise is simply misrepresenting the facts', said the spokesman.

'Wells Fargo’s Foreclosure Attorney Procedures Manual provides guidelines for outside attorneys to be compliant with state and regulatory requirements'.

The Post broke the story online Wednesday of the allegations, made in court papers, that the manual was evidence of improper practices for procuring foreclosure documents.

Since then, four major watchdogs have taken notice. New York’s attorney general, the Consumer Financial Protection Bureau, the New York State Department of Financial Services and the United States Trustee Program — a unit of the Department of Justice that oversees bankruptcy courts — have obtained copies of the 150-page Wells Fargo Home Mortgage Foreclosure Attorney Procedures Manual cited in the allegations filed in federal court in New York, sources said.

To access the complete New York Post article hit the link below:

NY State regulators eyeing Wells Fargo foreclosure manual

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