Wells Fargo, in a new public filing, hiked its estimate for potential losses stemming from foreclosure-related litigation against the bank.
The nation’s second largest servicer of home mortgages said in a Securities and Exchange Commission filing that it could face up to $1.7 billion of losses from lawsuits beyond what it has already set aside in reserves for such problems.
That amount is $500 million more than the bank reported last quarter.
A bank spokeswoman said substantially all of the increase is tied to matters related to residential foreclosures, an issue that is plaguing not only Wells but most of the top 10 ranked servicers.
Bank of America, the nation’s largest servicer of home mortgages, this week disclosed that the range of possible legal losses in excess of its reserve increased slightly in the first quarter, to between $150 million and $1.6 billion, from between $145 million and $1.5 billion.
