California Real Estate Fraud Report

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09
May

Wells Fargo “Smoking Gun” Foreclosure Manual Going on Trial

A plaintiff suing Wells Fargo has achieved an important pre-trial ruling that could affect other homeowners seeking to sue the banking behemoth for how it treats its borrowers in foreclosure.

U.S. Judge Allan Gropper of New York ruled that Wells Fargo’s Home Mortgage Foreclosure Attorney Procedure Manual will be allowed into court after attorney Linda Tirelli argued the 150-page manual was relevant to the bankruptcy case of Mota v. Wells Fargo because the bank was using the manual to “falsely create evidence of ownership” in the note. Just as interesting, the manual allegedly instructs the bank’s attorneys on how to proceed with a foreclosure, even when the bank is missing critical documents.

“(Wells Fargo) can no longer deny having procedures for endorsing notes or provide witnesses who lack knowledge about the procedures, which is what they have consistently done in the past,” Tirelli told HousingWire on Monday. “The procedure manual is raising a lot of eyebrows and rightfully so. I attended the National Association of Consumer Bankruptcy Attorneys convention April 11-13 … during which I spoke with many consumer attorneys from across the country who have run into the same problem of witnesses being provided by Wells Fargo who simply lack knowledge of the process or deny there is a process for obtaining endorsements on notes and creating assignments or affidavits of lost note.”

In a different bankruptcy case – Cynthia Franklin v. Wells Fargo – Tirelli has filed a motion to re-open discovery post-trial because she only discovered the foreclosure manual just after the trial.

Read the original article in HousingWire.

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