Here is a copy of the “Wells Fargo Foreclosure Manual”, which has recently surfaced in a New York foreclosure case. This manual is the subject of current, ongoing litigation. It sets forth certain damaging information, in the context of how Wells Fargo not only processes foreclosures, but takes direct and affirmative steps to “fix” and/or “cure” borrowers mortgage loan accounts, resulting from the securitization practices of “yesteryear.”
Among other things, this document instructs employees to sign, acknowledge, stamp or endorse certain loan documents for the purpose of advancing litigation – not because those documents should have been signed, acknowledged, stamped or endorsed (anyway) to begin with…
Although the impact and relevancy of this ‘Foreclosure Manual’ is still being reviewed by the Court, there is damaging information already in black and white. As you delve deeper into the document, you will find sections entitled, “Note Endorsement,” which, for example, instructs employees to endorse notes where necessary, and send the original (“now endorsed”) Note to the attorney.
Here’s where, in particular, I get sick to my stomach. That Note is now going to get offered to a Judge to win a foreclosure case and take a home. Is that homeowner trying to work out a loan mod? Did the husband just get laid off? The attorney is probably going to say something like, “my client bought this loan, Judge. We even have the original documents here in court today.” Hard to win, when they have the original which is purported to be properly endorsed.
That’s where we demand the transactional evidence. Forget the note; show me the wire confirmation, where your client paid for that note.
I know that more information and explanation is forthcoming, but this document looks like it provides a roadmap for profiteers to avoid state laws and “properly” misrepresent loan documents to then put themselves in the position to process a foreclosure. Wow. If modern banking practices are not easily facilitated by our archaic land records of yesteryear, then Wells Fargo should lobby to enact new law, not steal homes by fixing loan documents.*
* I must disclaim, again, that document is the subject of current litigation, so please understand that I’m just posturing, based on what I’m reading in the actual Wells Fargo document and my experience as a practicing attorney, familiar with this kind of stuff.