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Wells Fargo Refusal of Loan Modification Supplemental Settlement (Hernandez II)

Settlement Structure: Claims Made

Active: Open

Case Summary:

This is a supplemental settlement for a class action alleging that, between 2010 and 2018, Wells Fargo Bank, NA miscalculated attorneys’ fees when determining whether borrowers qualified for its loan modification program, which was under the US Department of Treasury’s Home Affordable Modification Program (HAMP). The fees should have been compared for the calculation, but Wells Fargo added them, resulting in the bank’s refusal to grant loan modifications to qualified borrowers, and 1,200 borrowers then losing their home to foreclosure.

Earlier, Wells Fargo admitted the error and sent letters and checks to the borrowers. The class action was filed to seek full compensation. An earlier settlement (Hernandez I) gave settlement payments to more than 500 borrowers. However, another 700 borrowers were later identified.

This settlement is to provide payments to those borrowers. It adds the possibility for claimants to file for severe emotional distress.

Docket Number:

3:18-cv-07354-WHA

Company: Wells Fargo

Filing Deadline: October 25, 2021

Class Period: January 1, 2010 to December 31, 2018

Objection Deadline: October 25, 2021

Exclusion Deadline: October 25, 2021

Final Approval Hearing: January 6, 2022

Proof of Purchase:

If you are a supplemental class member, you do not have to do anything to receive your payment. (However, you should let the Settlement Administrator know if you have had an address change.) If you also believe you suffered from severe emotional distress, you submit a claim form for a payment from a payment fund established for that purpose. You may, but are not required to, submit any documentation that will help the special master evaluate your emotional distress claim.

Eligibility:

You may be eligible if you are a person in the US who, between 2010 and 2018,

- Qualified for a home loan modification or repayment plan under the requirements of government-sponsored enterprises (such as Fannie Mae or Freddie Mac), the Federal Housing Administration (FHA), or the US Department of Treasury’s Home Affordable Modification Program (HAMP);
- Were not offered a home loan modification or repayment plan by Wells Fargo due to excessive attorneys’ fees being included in the loan modification decision process;
- Wells Fargo sold your home in foreclosure; and
- You were not part of the Hernandez I settlement.

Typical Settlement Amount:

Portion of the net settlement fund, based on (1) the amount of your unpaid balance at the time of the error, (2) whether you had been delinquent for six months or more at the time of the error, and (3) how much Wells Fargo previously sent you. Also, $1,450,000 of the settlement amount has been set aside to pay claims for severe emotional distress. Claims will be evaluated by a special master appointed by the court, an attorney experienced in handling emotional distress claims.

Total Settlement Amount: $21,865,690, including $1,450,000 for a Severe Emotional Distress Fund

Class Representative Proposed Incentive Fee:

Law Firms:
Gibbs Law Group
Paul LLP

Claim Form: Severe Emotional Distress Claim Form

Case Name: Hernandez et al. v. Wells Fargo Bank

Settlement Website: Wells Fargo Refusal of Loan Modification Supplemental Settlement Website

Claims Administrator:
JND Legal Administration

Claims Administrator Contact Information:

Hernandez v. Wells Fargo Bank, N.A.
c/o JND Legal Administration
P.O. Box 91350
Seattle, WA 98111
info@HomeLoanModificationSettlement.com
1-877-545-0236

Tags: Mortgage or Loan Modifications, Mortgage-Related Unfair Practices, Your Bank