first_img November 6, 2015 1,065 Views  Print This Post Subscribe Wells Fargo Settles With DOJ Over Bankruptcy Rules Violations Brian Honea’s writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master’s degree from Amberton University in Garland. The Week Ahead: Nearing the Forbearance Exit 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Wells Fargo Bank and the Department of Justice’s U.S. Trustee program have entered into a settlement agreement over the bank’s acknowledged violation of federal bankruptcy rules that took effect in December 2011, according to an announcement from the DOJ.Under the terms of the settlement, Wells Fargo is required to pay $81.6 million in remediation to homeowners who were in bankruptcy between December 11, 2011, and March 31, 2015. The bank has acknowledged that repeatedly failed to timely file more than 100,000 payment change notices (PCNs), which are required to be filed by mortgage creditors and served 21 days before the Chapter 13 debtor’s monthly mortgage payment is adjusted (Bankruptcy Rule 3002.1).The bank also acknowledges that it failed to perform more than 18,000 escrow analyses on nearly 68,000 mortgage accounts of homeowners in bankruptcy during the three-plus year period from December 2011 to March 2015. Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Home / Daily Dose / Wells Fargo Settles With DOJ Over Bankruptcy Rules Violations Bankruptcy Department of Justice Wells Fargo 2015-11-06 Brian Honea Demand Propels Home Prices Upward 2 days ago Tagged with: Bankruptcy Department of Justice Wells Fargocenter_img Demand Propels Home Prices Upward 2 days ago in Daily Dose, Featured, Government, News Related Articles The Best Markets For Residential Property Investors 2 days ago “I am pleased that Wells Fargo has acted responsibly by accepting accountability for its deficient bankruptcy practices, agreed to compensate affected homeowners for those deficiencies and committed to making necessary improvements in its bankruptcy operations,” said Director Cliff White of the U.S. Trustee Program. “When creditors fail to comply with the bankruptcy laws and rules, they compromise the integrity of the bankruptcy system and must be held accountable. Transparency in the process is of paramount importance. Homeowners in bankruptcy have the right to proper and timely notices, particularly when they are being asked to pay more. The U.S. Trustee Program remains diligent in its effort to hold financial institutions that disregard the law accountable for their actions.”Wells Fargo has also agreed to change its internal operations and submit to oversight by an independent monitor who will periodically perform compliance checks and file reports with the bankruptcy court, according to the DOJ. The two parties have selected Lucy Morris of Hudson Cook LLP as the independent reviewer, and the bank will pay all costs associated with the compliance reviews.“We believe we have made the necessary investments and improvements in our systems and processes to ensure that payment change notices for the bankruptcy court and escrow analyses for customers in bankruptcy are properly prepared and delivered in a timely fashion,” said Michael DeVito, executive vice president for Wells Fargo Home Mortgage. “We will work with the U.S. Trustee’s office and an independent reviewer to demonstrate the effectiveness of our improvements and to provide payments to customers, as required.”Click here for a breakdown of the settlement terms. About Author: Brian Honea Governmental Measures Target Expanded Access to Affordable Housing 2 days ago “Homeowners in bankruptcy have the right to proper and timely notices, particularly when they are being asked to pay more.”Department of Justice Share Save Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Sign up for DS News Daily Previous: Fannie Mae, Freddie Mac Q3 Earnings Reports Fuel Bailout Speculation Next: OCC to Test Banks for TRID Compliancelast_img

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