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A $30 million settlement has been proposed that would end a Wells Fargo FHA mortgage class action lawsuit alleging that the bank charged consumers interest even after they had paid off their loan.
Lead plaintiff Vana Fowler alleges in the Wells Fargo class action lawsuit that Federal Housing Administration mortgage holders were unfairly charged interest.
She claims that Wells Fargo assessed interest fees on amounts they had already submitted payments on for nearly two decades.
According to the Wells Fargo FHA mortgage class action lawsuit, the bank will pay $30 million to more than 1 million Class Members hit with the interest charges. That would amount to a nearly $30 payment to each Class Member.
“The Settlement was reached after months of discovery, arm’s-length negotiations, and a mediator’s proposal, and enjoys the support of a neutral mediator who had an integral part in the settlement negotiations,” states the plaintiffs’ motion for preliminary approval of the Wells Fargo class action settlement agreement.
Under the terms of the Wells Fargo FHA mortgage class action settlement, the class representatives will receive a $7,500 and $5,000 award for bringing the claims. The attorneys are asking for $7.5 million in fees.
“This case presents no realistic alternative to a class action because it is a ‘negative value suit’ with more than 1.1 million class members; i.e., a case where an individual suit will cost a class member more than he or she could recover,” states the plaintiffs’ motion.
The Wells Fargo FHA mortgage class action lawsuit alleged that the bank failed to meet strict HUD standards when it assessed post-payment interest fees on FHA mortgage holders. Wells Fargo argued that it had not violated the standards and the parties participated in mediation.
The proposed Class in the Wells Fargo class action lawsuit includes “the collective group of all persons nationwide who had an FHA-Insured Loan that was originated beginning June 1, 1996 and ending January 20, 2015, where (i) Wells Fargo or its predecessor was the mortgagee or servicer as of the date the total amount due on the FHA-Insured Loan was brought to zero, (ii) Wells Fargo collected Post-Payment Interest on the FHA-Insured Loan during the applicable Limitations Period, and (iii) the borrower made a prepayment inquiry, request for payoff figures, or tender of prepayment but did not receive a Payoff Statement containing the verbatim Post-Payment Interest disclosure language in Housing Handbook, 4330.1 REV-5 Appendix 8(c) or the verbatim language contained in the ‘Payoff Disclosure’ referenced in the Housing Handbook 4000.1.”
The Wells Fargo class action settlement preliminary approval hearing will take place on Aug. 9, 2018.
Top Class Actions will post updates to this class action settlement as they become available. For the latest updates, keep checking TopClassActions.com or sign up for our free newsletter. You can also receive notifications when this article is updated by using your free Top Class Actions account and clicking the “Follow Article” button at the top of the post.
The lead plaintiffs and proposed Class are represented by Michael F. Ram and Susan S. Brown of Robins Kaplan LLP, Kevin E. Epps and Adam L. Hoipkemier of Epps Holloway Deloach & Hoipkemier LLC and Samuel Strauss of Turke & Strauss LLP.
The Wells Fargo FHA Mortgage Class Action Lawsuit is Fowler v. Wells Fargo Bank NA, Case No. 4:17-cv02092, in the U.S. District Court for the District of Northern California.
UPDATE: On Aug. 22, 2018, a California federal judge gave initial approval to a $30 million class action settlement over allegations Wells Fargo Bank NA charged interest to home loan borrowers after they paid off their FHA-insured loans.
UPDATE 2: October 2018, the Wells Fargo FHA loan interest class action settlement is now open. Click here for more information.
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239 thoughts onWells Fargo Agrees to $30M FHA Mortgage Class Action Settlement
How do I find out if I am owed money from Wells Fargo, they forclosed on my home in 2007.
I received a postcard in the mail as well
Please add me as well. My home was forclosed on in 2013. I spent months working with them trying to save my house. I filled out tons of paperwork, submitted it just to be told they didn’t receive it.
Yes, we are still under two loans with WF mortgage under the 80/20 rule and we have been paying since 2005 on a 23,000 loan mostly interest since and now owe 18,000 still.
Add me
I was foreclosed by Wells Fargo in 2012 after much letter writing and back and forth with them. How will I know if I am part of the settlement and file a claim?
I had a mortgage with them starting in 2005. How do I find out more on this??
No claim form required: https://topclassactions.com/lawsuit-settlements/lawsuit-news/861711-wells-fargo-fha-home-loan-interest-class-action-settlement/. You can contact the settlement administrator with questions about your status as a class member.
Add me
add me
No claim form required: https://topclassactions.com/lawsuit-settlements/lawsuit-news/861711-wells-fargo-fha-home-loan-interest-class-action-settlement/. You can contact the settlement administrator with questions about your status as a class member.
Please add me I had my loan with them for my house during that time period
No claim form required: https://topclassactions.com/lawsuit-settlements/lawsuit-news/861711-wells-fargo-fha-home-loan-interest-class-action-settlement/. You can contact the settlement administrator with questions about your status as a class member.
I dont understand. It, I had a loan from wells Fargo and I received a card fronFowler et al v wells Fargo. I dont know if I am entitled to anything.
I am just curious that all the time I had my mortgage and applied for a modification between 2006 and 2016 we have never had a modification even though I had applied for it twice, Wells Fargo kept telling us that we were not entitled to one at that time my work had diminished through the recession! my wife was the only one who had a income, we were told at one point that they would not help us unless we were behind,we were them referred to agent to discuss our which we attended with no further communication and sometime later received letters of intent to foreclose.
I received 2 cards with 2 different ID numbers on them, why did I get 2 of these and what does that mean?
No claim form required: https://topclassactions.com/lawsuit-settlements/lawsuit-news/861711-wells-fargo-fha-home-loan-interest-class-action-settlement/. You can contact the settlement administrator with questions about your status as a class member.