Wells Fargo to resubmit 55,000 foreclosure affidavits
Wells Fargo (WFC) will submit 55,000 supplemental affidavits for pending foreclosures in 23 judicial states, according to a company statement Wednesday. Since Ally Financial (GJM), JPMorgan Chase (JPM) and Bank of America (BAC) suspended foreclosures in those states after admitting employees signed affidavits without reviewing documentation or having a notary present, Wells Fargo and other banks began their reviews. Wells strongly stood by its foreclosure processes, and the company still believes "it has designed an appropriate process for the generation of foreclosure affidavits" and the submitted signatures are cautionary steps. "Out of abundance of caution and to provide an additional level of assurance regarding its processes, the company is electing to submit supplemental affidavits for approximately 55,000 foreclosures which are pending before courts in 23 judicial foreclosure states," according to the statement. Regulators and 50 state attorneys general offices have launched investigations into mortgage servicers' practices. Wells Fargo said the new affidavits should be resubmitted by the middle of November. If the company can't meet the designated court review date, it will request an extension to assure the file contains a supplement affidavit before the judge rules on the foreclosure case. The company also restated it will not institute a moratorium. "At Wells Fargo, foreclosure is a last resort," Mike Heid, co-president of Wells Fargo Home Mortgage, said. "In September 2010, borrowers who have completed foreclosure were on average 16 months delinquent on their payments. When all options have been exhausted, we believe foreclosures should not be delayed." Write to Jon Prior.