Wells Fargo Exec Admits Servicing Oversight

A Wells Fargo servicing executive admitted in a Phoenix federal bankruptcy court last week that the company had erred in its requests for documentation from a borrower who had been denied a loan modification.

Judge Randolph J. Haines had previously made the uncommon order of summoning a Wells Fargo executive to appear in court and explain why the borrower, Bobbie Giguere, had failed in obtaining a modification. Giguere, who had filed bankruptcy in an effort to keep her home, said she had submitted all the requested paperwork on three separate occasions but that ‘nothing happened.’

Joseph Ohayon, senior vice president of Wells Fargo Home Mortgage Servicing, told attorneys during preliminary questioning that Giguere did not include a financial worksheet with any of the documentation packages that she submitted, the New York Times reports.

In court, Ohayon was asked to read Wells Fargo's letter to Giguere, which outlined documentation requirements. After reading the letter, Ohayon said, "Mrs. Giguere is right. The letter did not ask for a financial worksheet."

According to the Times, Haines did not sanction Wells Fargo, and the bank said it would again enter modification negotiations with Giguere.

"I don't necessarily think we've done a poor job of communicating with our customers, but I think there is an opportunity to improve the overall customer experience during what is a very difficult time for them," Ohayon said in court, according to a report on KPHO.com.

SOURCE: New York Times, KPHO


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