Wells Fargo Is Accused of Making Improper Changes to Mortgages
Wells Fargo has been accused in lawsuits of significantly extending mortgage loan terms of customers in bankruptcy without their knowledge.
Max Whittaker for The New York Times
By GRETCHEN MORGENSON
June 14, 2017
Even as Wells Fargo was reeling from a major scandal in its consumer bank last year, officials in the company’s mortgage business were putting through unauthorized changes to home loans held by customers in bankruptcy, a new class action and other lawsuits contend.
The changes, which surprised the customers, typically lowered their monthly loan payments, which would seem to benefit borrowers, particularly those in bankruptcy. But deep in the details was this fact: Wells Fargo’s changes would extend the terms of borrowers’ loans by decades, meaning they would have monthly payments for far longer and would ultimately owe the bank much more.