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WELLS FARGO
ANNOUNCES FEE
REFUNDS
Wells Fargo announced it will be reaching
out to all home lending customers from
September 16, 2013, through February 28, 2017,
who paid fees for mortgage rate lock extension
requests.
According to Wells Fargo, it was already
stated that they would be reviewing past policies
and procedures for situations such as the above
mentioned and again stated the plan during a
hearing on October 3, 2017.
"We want to serve our customers as they
would expect to be served, and are initiating
these refunds as part of our ongoing efforts to
rebuild trust," Tim Sloan, CEO of Wells Fargo,
said.
e rate-lock extension policy in place in
September 2013 was said by Wells Fargo to be
not consistently applied at times and resulted in
some borrowers being charged fees when it was
the company primarily at fault for the delay that
made the extensions necessary. On March 1,
2017, the company changed how it manages the
mortgage rate-lock extension process to alleviate
this problem and ensure consistency through the
use of a review team that will review all requests
and apply Wells Fargo's policy.
Wells Fargo expects the first customer com-
munications and refunds to go out in Q 4 2017.
"A total of approximately $98 million in
rate-lock extension fees were assessed to about
110,000 borrowers during the period in question,
although the company believes a substantial
number of those fees were appropriately charged
under its policy," the release stated.
Due to the fact that not all fees assessed
were paid and some have already been refunded,
Wells Fargo anticipates the amount refunded to
likely be lower.
