In response to the parties’ notice that Wells Fargo has identified additional class members, the Court issued an order on November 22, 2020 stating that the settlement administrator cannot issue payments to class members at this time. Therefore, no checks will be mailed out on November 30, 2020. However, the Court has set a status conference for 8 a.m. PST on December 1, 2020. A further update will be posted here after that conference.
What is this lawsuit about?
The lawsuit alleges that between 2010 and 2018, Wells Fargo miscalculated attorneys’ fees that were included for purposes of determining whether a borrower qualified for a mortgage loan modification under the U.S. Department of Treasury’s Home Affordable Modification Program (HAMP). Specifically, fees that should have been compared for purposes of the relevant calculation were instead added – which resulted in the erroneous denial of trial loan modification and repayment plans. Over 500 borrowers impacted by this calculation error later lost their homes to foreclosure.
Wells Fargo publicly acknowledged the calculation error and sent letters and checks to affected borrowers. Plaintiffs filed this lawsuit to seek what they claim is full compensation for themselves and similarly situated borrowers.
Wells Fargo denies Plaintiffs’ allegations. Wells Fargo denies that it breached a contract or that the erroneous calculations of trial payment plans caused foreclosures or any related damages.
Who is included?
You are a member of the Settlement Class if the calculation error caused you to be denied a trial loan modification (even though you qualified for one) and you later lost your home in a foreclosure sale. You likely received a letter from Wells Fargo in 2018 or 2019 regarding the error.
The Court’s description of the Class is as follows:
All persons in the United States who between 2010 and 2018 (i) qualified for a home loan modification or repayment plan pursuant to the requirements of government-sponsored enterprises (such as Fannie Mae and Freddie Mac), the Federal Housing Administration (FHA), the U.S. Department of Treasury’s Home Affordable Modification Program (HAMP); (ii) 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 decisioning process; and (iii) whose home Wells Fargo sold in foreclosure.
How do I participate?
You do not need to do anything to receive your share of the settlement. Your money will be mailed to you automatically if the Court approves the settlement, unless you exclude yourself from the settlement. If your address changes, please let the Settlement Administrator know your new address.
If you believe you suffered severe emotional distress, you were able to apply for an additional payment from the $1 million fund set aside for this purpose. The deadline to submit a claim was July 2, 2020 and has passed. An attorney experienced in handling emotional distress claims has been appointed by the court as a special master to process these claims and determine which Class Members will get additional settlement payments and the amount of those payments.