Based on the study, mortgage creditors in the 1,733 cases put in claims for
almost $6 million more than the loan debts listed by borrowers in the
bankruptcy filings. The discrepancies are too big, Ms. Porter said, to be
simple record-keeping errors.

Michael L. Jones, a homeowner going through a Chapter 13 bankruptcy in
Louisiana, experienced such a discrepancy with Wells Fargo Home Mortgage.
After being told that he owed $231,463.97 on his mortgage, he disputed the
amount and ultimately sued Wells Fargo.

n April, Elizabeth W. Magner, a federal bankruptcy judge in Louisiana,
ruled that Wells Fargo overcharged Mr. Jones by $24,450.65, or 12 percent
more than what the court said he actually owed. The court attributed some of
that to arithmetic errors but found that Wells Fargo had improperly added
charges, including $6,741.67 in commissions to the sheriff¹s office that
were not owed, almost $13,000 in additional interest and fees for 16
unnecessary inspections of the borrowers¹ property in the 29 months the case
was pending.

³Incredibly, Wells Fargo also argues that it was debtor¹s burden to verify
that its accounting was correct,² the judge wrote, ³even though Wells Fargo
failed to disclose the details of that accounting until it was sued.²

A Wells Fargo spokesman, Kevin Waetke, said the bank would not comment on
the details of the case as the bank is appealing a motion by Mr. Jones for
sanctions. ³All of our practices and procedures in the handling of
bankruptcy cases follow applicable laws, and we stand behind our actions in
this case,² he said.

In Texas, a United States trustee has asked for sanctions against Barrett
Burke Wilson Castle Daffin & Frappier, a Houston law firm that sues
borrowers on behalf of the lenders, for providing inaccurate information to
the court about mortgage payments made by homeowners who sought refuge in
Chapter 13.

Michael C. Barrett, a partner at the firm, said he did not expect the firm
to be sanctioned.

³We certainly believe we have not misbehaved in any way,² he said, saying
the trustee¹s office became involved because it is trying to persuade
Congress to increase its budget. ³It is trying to portray itself as an organ
to pursue mortgage bankers.²

Closing arguments in the case are scheduled for Dec. 12.

http://www.nytimes.com/2007/11/06/business/06mortgage.html?

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