Wells Fargo Denied Borrowers HAMP Home Loan Adjustments Class Action

Wells Fargo has seen a number of scandals, including its employees opening fake accounts for real customers and its force-placing of unnecessary auto insurance on car loan borrowers. Now, the complaint for this class action alleges that the bank wrongfully refused certain customers home loan modifications under the Home Affordable Modification Program (HAMP). 

The class for this action is all persons who were refused a HAMP modification by Wells Fargo due to a calculation error with respect to attorneys’ fees for the purposes of determining whether a customer qualified for a loan modification or other errors regarding the maximum allowable foreclosure attorneys’ fees. A New Jersey subclass has also been proposed, comprised of those whose properties were in New Jersey.

Plaintiff Alicia Hernandez was working full-time before the 2008 financial crisis and owned a condo in North Bergen, New Jersey. However, during the recession, she lost her job and was eventually unable to pay her mortgage. 

The complaint claims that she was exactly the type of person that HAMP was intended to help. However, Wells Fargo started foreclosure proceedings. Hernandez fought to keep her home in a pro se action, but in the end, she lost her home. 

How did this happen? The complaint claims that Wells Fargo accepted up to $6.4 billion in HAMP funding but did not properly administer it. 

Fannie Mae developed software to determine whether a borrower was eligible for HAMP, but Wells Fargo did not use it. Instead, it developed its own software, and the company now admits that it resulted in faulty calculations that improperly denied loan modifications to some 870 borrowers who should have qualified. The complaint alleges that Wells Fargo now admits that it foreclosed on 545 of them, when they should have been offered loan modifications instead. 

Now, with other scandals coming to light, Wells Fargo has lost business. It is no longer the country’s largest mortgage lender. As part of its effort to convince consumers that it is an honest, fair-dealing company, its recent SEC filing says it has “contacted a substantial majority of the approximately 870 affected customers to provide remediation.” The complaint says this involves sending them checks for amounts between $1,400 and $25,000, without explanation of how the amounts were calculated.

Plaintiff Hernandez received a check for $15,000. The letter accompanying the check said, “When you were considered for a loan modification, you weren’t approved, and now we realize that you should have been. We based our decision on a faulty calculation…” But the complaint says that the check “does not make up for … the money and equity she lost from the foreclosure, the damage to her credit rating, and other serious consequences for her and her family.”

The complaint claims Wells Fargo is guilty of negligence and conversion, among other things.

Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

Wells Fargo Denied Borrowers HAMP Home Loan Adjustments Class Action

December 5, 2018

Wells Fargo has seen a number of scandals, including its employees opening fake accounts for real customers and its force-placing of unnecessary auto insurance on car loan borrowers. Now, the complaint for this class action alleges that the bank wrongfully refused certain customers home loan modifications under the Home Affordable Modification Program (HAMP). 

wells_fargo_home_loan_modifications_compl.pdf

Case Event History

Wells Fargo Denied Borrowers HAMP Home Loan Adjustments Class Action

December 5, 2018

Wells Fargo has seen a number of scandals, including its employees opening fake accounts for real customers and its force-placing of unnecessary auto insurance on car loan borrowers. Now, the complaint for this class action alleges that the bank wrongfully refused certain customers home loan modifications under the Home Affordable Modification Program (HAMP). 

wells_fargo_home_loan_modifications_compl.pdf
Tags: Mortgage or Loan Modifications, Mortgage-Related Unfair Practices, Unlawful Practices