Wells Fargo recently expressed a need for an increase in their legal reserves funding in the bank’s quarterly report to the Securities and Exchange Commission.
By the end of 2010 the lending institution estimated needing an additional $1.2 billion to its already existing reserve in order to combat probable losses regarding faulty foreclosures. In the recently filed report to the SEC Wells Fargo, the 4th largest bank in the nation, now estimates needing another $500 million rounding out at roughly $1.7 billion.
A spokeswoman from the bank stated that “management determined this amount based on its best estimate”.
In order to avoid future foreclosure faux pas Wells Fargo mentioned in this same report to the SEC that "a special master to review mortgage foreclosure affidavit processes" complying with stipulations sited by the New Jersey Supreme Court, the New Jersey Administrative Office of the Courts and the Superior Court of New Jersey for Mercer County.