Well Worth The Wait? (NYSE: WFC)

New York- Wells Fargo stock dropped 4.22% on the day as investors were concerned about the banks involvement in "robo-gate." The scandal involves foreclosures on houses by the banks without the necessary documentation and the foreclosure of houses using robo-signers which is when workers involved in forclosures indicate the documentation is present when it is not. It has been reported Xee Moua a vice president of loan documentation for Wells Fargo, the second-largest US mortgage servicer, had pushed through 500 foreclosures a day.

Some of the banks are having trouble of identifying the owner of the actual mortgages. This was caused by the securitization of the mortgages industry which also led to the financial crisis in 2008. The securatization is the repackaging of mortgages into smaller pieces and then selling them like bonds or stocks to investors. The issue would be if banks have submitted forged documents in order to get the foreclosure processed and if the banks have the documents necessary to foreclose on future loans. All of these problems are rectified if the banks prove they own the mortgage.

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