On Wednesday the banking major, Wells Fargo stated that its business is doing pretty well and is not affected by the hovering crisis of careless lending and foreclosure practices as apprehended by few analysts.

John Stumpf, the CEO and chairperson of the bank stated that they are very sure about their procedures and practices of foreclosures and further added that there securitization of mortgages are very sound and perfect.

Wells Fargo reported a profit of three decimal three billion dollars in the third quarter of the current fiscal.

However in the month of March there was a deposition in which the bank’s vice president of loan documentation stated that there was an incident of ‘robo-signing’ which questioned the legitimacy of foreclosures of the bank. Stumpf’s assertive statement also failed to justify the incident.

Even Xee Moua the vice president of the banking institution stated that she signed at least five hundred documents within a span of two hours.

She supposedly attested to the authenticity of the paperwork but she neither understood what she was signing nor did she verify the information. She clearly stated that she was not supposed to check the numbers. That is not a part of her job.

.According to several analysts and investors the banks can face costly litigations for fraudulently preparing document of foreclosures. They won’t be able to write off the offending loans from their ledgers and can lead to the downfall of real estate markets that have not yet fully recovered from the impact of the housing collapse.

Again some other thinks that big banks might be compelled to refund huge amount of money to investors as the institution failed to interpret the quality of loans. They even spoiled the paperwork when they accumulated loans into securities before selling them.