Wells Fargo blames computer glitch for customers losing homes

Wells Fargo blames computer glitch for customers losing homes
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Wells Fargo is blaming a computer glitch for more than 400 customers losing their homes between 2010 and 2015. 

The bank revealed in regulatory filings last week that the technological error resulted in 625 customers being denied loan modifications, and about 400 costumers having their houses foreclosed on, CNN Money reported on Friday.  

The filing says the bank has set aside $8 million to compensate the affected customers, it added.

Wells Fargo apologized for the error and said in a statement that it is "providing remediation" to customers whose mortgages were affected, according to CNN.

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The Treasury Department set up a program in 2009 to help Americans struggling to pay their mortgages, offering them the opportunity to apply for loan modifications, the network noted, adding that the computer error rejected applications from 625 Wells Fargo customers. 

A bank spokesperson told CNN that there is "not a clear, direct cause and effect relationship" between the error and foreclosures, but said some customers who were denied loan modifications lost their homes.

Multiple government agencies are also probing Wells Fargo for its financing of low-income housing developments, Reuters reported

The embattled bank last week agreed to pay more than $2 billion to settle allegations related to offering subprime mortgages in the years before the 2008 financial crisis.