On Friday, Wells Fargo issued an apology to the hundreds of customers who lost their homes over the course of five years due to a calculation error. The bank blamed the issue on the company’s mortgage underwriting tool, leading customers to be wrongly denied access to loan modifications that would have made their debts more affordable.
In total, 625 Wells Fargo customers were affected by the calculation, according to a report by the Daily Mail. Of those 625, 400 of the homes ultimately ended up in foreclosure.
The error was corrected in October 2015 but had existed since April 2010. According to the bank, the issue was caught during an internal review.
Wells Fargo states that the company set $8 million aside to deal with customer issues based on the error.
“We’re very sorry that this error occurred and are providing remediation to the approximately 625 customers who may have been impacted,” said Wells Fargo spokesman Tom Goyda in a statement. He did not provide details on where the customers were from or their identities.
The company also revealed that they were the subject of a probe by federal agents who were examining how the bank managed to purchase federal low-income housing tax credits that connected to the financing of low-income housing developments.
Wells Fargo did not provide any additional details regarding the investigation.
The calculation error is just one of a number of revelations plaguing the bank. On Wednesday, Wells Fargo was fined over $2 billion by the US Justice Department for mortgages the company made and sold in the lead up to the financial crisis.
Wells Fargo agreed to the deal in an attempt to settle allegations that the bank knowingly misrepresented the quality of certain residential loans.
The company was also fined $1 billion in April by the Consumer Financial Protection Bureau along with the Office of the Comptroller of the Currency. The fine was based on claims that the company maintained improper mortgage and auto-lending practices that resulted in the harm of customers.
Wells Fargo also stated that other segments of the business are still subject to an internal review, specifically those that the company previously reported may have harmed customers. The parts of the bank include the foreign exchange, auto lending, wealth management, and certain add-on products, such as identity theft protection.