Software used by a popular bank caused hundreds of its customers to lose their homes. The mistake comes from the software miscalculating customer’s eligibility for mortgage modifications.
The error in the bank’s software began in 2010 and wasn’t recognized to be repaired until late 2015. This error caused 625 customers to be denied or not offered loan modifications they initially qualified for. Out of those 625 home owners, 400 went into foreclosure.
Wells Fargo says they set aside $8 million this year to help the customers affected by the error. Wells Fargo has been involved in multiple scandals recently that have cost the firm billions of dollars along with a list of lawsuits and investigations.