July 30, 2020

NBC News: Two senators demand answers from Wells Fargo following NBC News reports

The letter from Sens. Elizabeth Warren and Brian Schatz follows reporting on the bank's practice of pausing homeowners' mortgage payments without their consent.

Citing a recent investigation by NBC News, two U.S. senators have asked the chief executive of Wells Fargo to answer extensive questions about the bank’s practice of pausing mortgage payments for borrowers without their consent under a federal program designed to help homeowners financially hurt by COVID-19.

The senators, Elizabeth Warren of Massachusetts and Brian Schatz of Hawaii, both Democrats and members of the Senate Banking Committee, wrote a letter on July 29 requesting information and documents about Wells Fargo’s policy of placing customers in so-called forbearance programs they did not request.

The conduct can harm borrowers’ credit reports by showing that they are not making payments even when they are and can prevent them from refinancing their home loans to take advantage of rock-bottom interest rates.

Read the full article on the NBC News website here

By:  Gretchen Morgenson
Source: NBC News