Publicly traded companies are under an obligation to announce business developments to its investors and analysts. Admission of an error in foreclosure proceedings is counted under that particular obligation. This is probably why the country’s second largest mortgage servicer, which previously said no such errors occurred in their banks, is now making a disclosure.
Wells Fargo & Co. made an unexpected announcement last Wednesday regarding refiling 55,000 foreclosure affidavits. If the bank expected uproar over this announcement, they would have been disappointed: analysts and investors were not a bit shocked with Wells Fargo’s move. A day after the announcement, analysts even said that this announcement has been expected when other major banks and lenders resorted to temporarily halting foreclosures.
Earlier, the San Francisco-based bank brushed off the foreclosure proceeding scandal saying that fraud and robo-signing were not a practice in their foreclosure proceeding as with their main rivals. It further stated that if errors were indeed unearthed, they will be corrected.
Banks and mortgage servicers who have earlier admitted errors in handling foreclosures are now under federal investigation. The review being conducted by the 50 state attorneys general is expecting the completion of preliminary results come next month, according to Federal Reserve Chairman Ben Bernanke. Ohio Attorney General Richard Cordray, who filed a lawsuit versus Ally Financial, says the recent admission by Wells Fargo just puts into question other statements by big financial firms.
Indeed, many are doubting statements by banks – especially those investors who have been swayed by the optimistic estimates being taunted by banks. The banks’ reputation of downplaying a mushrooming crisis and soft-pedaling losses precedes them. This makes it harder for investors to believe that no further foreclosure mishap will happen.
But Wells Fargo stayed true to its previous statement that any error will be mitigated – this is why it will not be under scrutiny of the Securities and Exchange Commission. This may also account for a 1% increase in the bank’s shares last Thursday at the New York Stock Exchange.
Nobody has brought up the distinct possibility that the loan servicers may well have bundled and sold each of these loans MORE THAN ONCE to differernt investors via the securitization process. THIS COULD BE THE REAL REASON THAT THERE IS NO DOCUMENTATION / PAPER TRAIL. The non-existent documentation and accounting is entirely consistent with this scenario. This means that the entire plan was a true Ponzi scheme in the worst sense. In other words, rather than selling the loan once to investors, as we have all naively been assuming, there is no reason to believe that they did not double-dip or quintuple-dip and sell the exact same loan to completely new buyers. THIS IS A LEVEL OF FRAUD THAT THE AMERICAN PUBLIC HAS NOT YET CONTEMPLATED.
There are no new laws that are necessary. All that is necessary is for the states to FOLLOW THE EXISITING LAWS which have been around much longer than any of us, or any of the banks themselves. These laws were devised to deal with all property frauds, including the current foreclosure frauds. No more bailouts. Let the chips fall where they may.
Wells Fargo made us a fraudulent mortgage loan, committed fraud on the court and wrongfully foreclosed our home.
Wells Fargo teamed up with its attorneys and spent last 4 years in Nevada courts defending its appraisal and mortgage fraud.
Wells Fargo and its attorneys knew it’s Category C Felony to make mortgage loan based on fraudulent appraisal.
Wells Fargo and its attorneys knew it’s Category C Felony to foreclose home based on fraudulent appraisal.
Wells Fargo chose to violate the law and chose to defraud us.
Please sign the Petition on our website http://www.wellsfargomortgagefraud.com. Let our voice to be heard!