Wells Fargo Mortgage Modification Lawsuit
- by Ayden
A Wells Fargo mortgage modification lawsuit has been filed against the bank. An individual or company has filed the suit because they are unable to pay their monthly mortgage payments. The complaint revolves around a Wells Fargo employees’ non-disclosure agreement that resulted in the loss of principal. Wells Fargo allegedly did not properly implement and maintain its internal guidelines and software to properly determine if a loan modification was necessary under HAMP regulations enacted by the US government. The complaint further alleges that Wells Fargo was aware of the flaw in 2021 yet failed to disclose it to its clients for nearly three months.
According to court documents, the employees were instructed by the bank not to discuss the case with anyone other than themselves. This is common among large banks and lending institutions that participate in the Home Affordable Modification Program (HAMP). The class action lawsuit claims that Wells Fargo intentionally did not inform its borrowers and class members that the bank’s internal systems were flawed. Wells Fargo subsequently paid a $100 million fine to settle the Federal Housing Agency claims that the bank discriminated against homeowners applying for mortgage modifications. The settlement did not resolve the illegal discrimination against homeowners however.
Attorneys who represent homeowners in the lawsuit settlement program will help clients understand their rights and how to go about filing a complaint with the bank. Other paperwork and forms will need to be filled out in order to receive and processing of mortgage payments. Lawyers help clients obtain the necessary forms as well as working with their local counterparts to assist them in completing these forms properly.
Another part of the lawsuit deals with Wells Fargo’s alleged attempts to contact borrowers who are late on their mortgage payments. According to the complaint, one of the bank’s loan officers instructed a customer to call back a few days after she had been late to repay a loan on her home in order to get an extension. When the customer did return, however, the loan officer instructed that customer to call back the next day and that person would get an answer from Wells Fargo. In addition to the harassing phone calls, the suit claims that the same agent repeatedly phoned a Wells Fargo representative to tell the customer to stop making payment on her home mortgage. When the borrower tried to explain that her account had been inactive for several months, the agent told her that the bank did not check the status of inactive accounts.
On Feb. 2, the city of Philadelphia sued Wells Fargo Bank, alleging the bank intentionally set out to force borrowers to purchase additional mortgages even when they were not interested in doing so. The plaintiffs further claim that the bank set out to force borrowers to sell their homes before the loan modification plan was offered to them. On Feb. 2, the United States attorney general announced that he has filed a civil lawsuit against Wells Fargo. A hearing has been scheduled for later this month, according to the United States attorney general. No timetable has been established for the case. The suit is currently active in the court system.
On Feb. 2, the U.S. Senate passed legislation that will temporarily relieve homeowners from paying unaffordable fees, penalties and costs related to mortgage foreclosure. According to the bill, lenders must forgive delinquent payments, reinstate loan modifications and provide borrowers with loan refunds. The bill is expected to be signed by president-elect Trump. It is currently unclear when the legislation will become law. In the meantime, the borrowers of Wells Fargo are urged to consult with legal counsel and review their legal options.
A Wells Fargo mortgage modification lawsuit has been filed against the bank. An individual or company has filed the suit because they are unable to pay their monthly mortgage payments. The complaint revolves around a Wells Fargo employees’ non-disclosure agreement that resulted in the loss of principal. Wells Fargo allegedly did not properly implement and…
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