A bad 12 months is getting even worse for Wells Fargo, which is announcing almost $100 million in refunds for mortgage customers who incurred charges that were mainly the bank's fault.
The beleaguered bank said it will be reaching out to all mortgage customers who paid fees for "mortgage rate lock extensions" between Sept. 16, 2013 through Feb. 28, 2017, and refund those who believe they shouldn't have paid them.
It follows a review of past procedures about how the fees were handed to customers, and found that some borrowers were charged even though Wells Fargo "was primarily responsible for the delays that made the extensions necessary."
When applying for a mortgage, a lender will offer you a certain interest rate for a specific time period, which you pay to "lock in," Zillow explains.
This protects you if underlying interest rates rise while you're going through the mortgage application process. But if that time period expires, you can pay more to have the rate lock extended so you receive what you were originally offered.
These additional fees are what some Wells Fargo customers had to pay for delays primarily the fault of Wells Fargo, with around $98 million in fees paid between 110,000 customers.
However, some customers affected have already been refunded by the bank, while not all of those given the fees ended up paying them.
It's been a scandal-plagued year for Wells Fargo, which last fall revealed around 5,300 workers had been fired over a phony account-creating scheme that saw more than 2 million accounts opened in customers' names without their permission.