Wells Fargo & Co. will refund customers who were improperly charged for mortgage rate lock extensions from Sept. 16, 2013, through Feb. 28, President and CEO Timothy Sloan told a senate panel during a hearing on Oct. 3.
The company expects to give out the first refunds in the fourth quarter. Approximately $98 million in mortgage rate lock extensions fees have been assessed to around 110,000 customers but Wells Fargo believes a number of these fees were appropriately charged.
According to the company's press release, the rate lock extension policy implemented in September 2013 had not been consistently applied, which resulted in some customers being improperly charged. Wells Fargo changed its mortgage lock extensions process, effective March 1.