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Wells Fargo has admitted a calculation error may have led to the unnecessary foreclosure of as many as 400 homes.
The bank said a mistake allowed for lawyers’ fees to be included in a formula that determined if struggling homeowners qualified for federally backed assistance programs. The error led to 625 customers being incorrectly denied loan modification with 400 of them having their homes foreclosed upon, CNN reported.
The homeowners affected by the error were in the foreclosure process between April 13, 2010 and Oct. 20, 2015. According to financial filings submitted last week, Wells Fargo has set aside $8 million to remediate customer losses, a figure that equals about $20,000 per customer.
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