Wells Fargo Refusal to Modify Mortgage Loans Settlement

Settlement Structure: Claims Made

Active: Open

Case Summary:

Wells Fargo is paying $18.5 million to settle a class action alleging that borrowers were denied home mortgage modifications, even though they qualified for them, and then lost their homes in foreclosure. The bank has admitted that it did this because of a calculation error and previously sent checks to affected borrowers.

Docket Number:

3:18-cv-07354-WHA

Company: Wells Fargo

Filing Deadline: July 2, 2020

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

Objection Deadline: July 2, 2020

Exclusion Deadline: July 2, 2020

Final Approval Hearing: August 20, 2020

Proof of Purchase:

You do not need to file a claim or show proof in order to receive payments for the refusal of loan modifications. If you wish to make a claim for severe emotional distress, you must file the claim form specifically intended for that.

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 and Freddie Mac), the Federal Housing Administration (FHA), and 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 attorney’s fees being included in the loan modification decision-making process, and
- Your home was later sold by Wells Fargo in a foreclosure.

Note that, in order to be eligible, you must have not only been refused the loan modification but also lost your home to foreclosure. You are also not eligible if Wells Fargo sent you a letter but later determined that you did not qualify for a trial loan modification, or you have already signed a settlement with Wells Fargo releasing the claims at issue in this case.

If you suffered severe emotional distress from these events, you can submit a claim for an additional payment. A $1 million fund has been set aside specifically for these claims.

Typical Settlement Amount:

Share of the net settlement fund based on (1) the amount of your unpaid balance at the time of Wells Fargo’s error, (2) whether you were delinquent on your loan for six months or more at the time of Wells Fargo’s error, and (3) how much Wells Fargo previously sent you in payment.

Total Settlement Amount: $18.5 million

Class Representative Proposed Incentive Fee:

$2,000-$2,500

Law Firms:
Gibbs Law Group
Paul LLP

Claim Form: Severe Emotional Distress Fund Claim Form

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

Settlement Website: Wells Fargo Refusal to Modify Mortgage Loans 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