Money & Company

Tracking the market and economic trends
that shape your finances.

« Previous Post | Money & Company Home | Next Post »

Wells Fargo says it is reviewing its foreclosure practices

October 12, 2010 |  3:09 pm

Wells Fargo & Co. said Tuesday that it had begun reviewing its pending foreclosures in the 23 states where courts preside over the seizure of homes. It was not immediately clear whether that review extended into so-called non-judicial states such as California.

A spokesman for the bank, Jason Menke, said the bank was not instituting a moratorium on foreclosure sales and evictions, as other big lenders have done. The Wells Fargo review, which began earlier this month, does not include completed foreclosures, Menke said. If errors are found in the filing of court paperwork, Menke said, the bank will submit corrected documents.

“We remain confident in our controls and procedures,” Menke said. “We don’t believe that there are any systemic issues with our process.”

Menke could not immediately say whether the review of the bank's procedures included non-judicial states such as California.

“When we do have to foreclose, that process follows the guidelines and the laws of the state" where the foreclosure is taking place, Menke said. “We believe that the process we have in place is sound, and we remain confident in it, whether it is in California or anywhere else.”

-- Alejandro Lazo