Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.
Wells Fargo failed to compensate consumers for mortgage modification denials stemming from a software glitch, according to a recent class action lawsuit.
In August 2018, Wells Fargo revealed that a glitch in its mortgage loan modification software resulted in around 625 applications being denied.
This figure was later raised to 870 and allegedly included Washington couple Monty and Michelle Coordes.
The Coordeses say they applied for a mortgage modification after Monty became unemployed in 2010 due to the recession. Their application was reportedly denied due to the Wells Fargo software glitch, resulting in the Coordeses losing their home to foreclosure.
Due to these injuries, and Wells Fargo’s alleged mishandling of the situation, the family has filed a class action lawsuit against the bank.
The couple argues that Wells Fargo knew about the software glitch but concealed it for three years after discovery.
According to the Wells Fargo class action lawsuit, the bank “should have reasonably known upon discovery of the software error that the resulting harm would continue for several years,” but failed to do this and instead “withheld the information and did not act to repair the credit reports of the Coordeses” and other consumers affected by the breach.
Wells Fargo claims that it is working to contact affected individuals to reach a resolution for damages allegedly sustained from the breach.
“We’ve been reaching out to customers through a dedicated single point of contact and mail to proactively provide remediation and to discuss their options, including the ability to request a no-cost mediation through an independent third party if they are not satisfied with what we’ve offered,” a spokesperson from Wells Fargo told Law360.
“While we would prefer to work directly with each customer to resolve the matter, if they aren’t satisfied with the remediation we’ve provided and/or the outcome of the mediation they still are able to pursue other legal options.”
Although the bank set up a $8 million remediation fund to compensate affected borrowers, the Coordes family argues that Wells Fargo owes their consumers more. The family received $25,000 from the remediation fund but they argue that this was not enough to compensate them for their economic injuries. The couple seeks further compensation in their lawsuit against the bank.
Monty and Michelle Coordes seeks to represent a Class of individuals who applied for mortgage modification from Wells Fargo between Apt. 13, 2010 and Oct. 20, 2015, but were denied due to the reported software glitch.
The Coordeses and the proposed Class are represented by Derek W. Loeser, Chanele N. Reyes and Matthew J. Preusch of Keller Rohrback LLP.
The Wells Fargo Mortgage Modification Class Action Lawsuit is Coordes v. Wells Fargo and Co., Case No. 2:19-cv-00052, in the U.S. District Court for the Eastern District of Washington.
UPDATE: On Oct. 18, 2019, a class action lawsuit filed against Wells Fargo related to a software malfunction that made some mortgage borrowers lose their homes will continue after a U.S. federal judge denied the bank’s motion to dismiss.
ATTORNEY ADVERTISING
Top Class Actions is a Proud Member of the American Bar Association
LEGAL INFORMATION IS NOT LEGAL ADVICE
Top Class Actions Legal Statement
©2008 – 2024 Top Class Actions® LLC
Various Trademarks held by their respective owners
This website is not intended for viewing or usage by European Union citizens.
26 thoughts onWells Fargo Class Action Says Software Glitch Cost a Couple Their Home
Please add me to this class action lawsuit
Please add me to class action. They had me add my daughter and still denied us after all the paperwork submitted.
I lost my home in 2017. I applied for a loan modification I was denied. I was told that it would not benefit Wells Fargo so I lost my home after having the home for 13 years. Wells Fargo should have not done this. I also lost an income property I had for 30 years after only behind 2 months in 2008. Wells Fargo denied me a loan modification because I fax over a document 1 day late. Wells Fargo should pay for what they did to hunred of thousand of homeowners losing their homes not working with the homeowners. Wells Fargo was bailed out by the government and their homeowners were left helpless. Please add me to the list
Our home was “accident sold” at foreclosure even though we applied and were approved for the HAMP loan modification. We were wrongfully Foreclosed!!
I was also denied refinance/loan modification, but for slightly different reason. My loan was no recorded as a mortgage, but as a home equity. After completing all the requirements for the program (including paying for appraisal) and waiting for closing date for more than a month, I was told by Wells Fargo that I did not qualify for HARP or other remedies, even though it was their mistake. Still struggling to make payments, I called a few weeks ago and found out there was info in my file related to that mistake that I was not aware of. Paperwork was requested to be forwarded, but to date nothing has been received. Complaint was also filed with Consumer Protection Bureau related to this issue in 2016. PLEASE CONTACT ME
Add me to the class action
Wells Fargo completely set my parents up with the modification. In the event of the sale of the home, they slipped in a clause requiring a $100,000.00 payment, which was based on nothing. They did not owe WFB $100,000.00. It was added to keep me from inheriting the house and to prevent my mother fro being able to keep the house. They had my father, extremely sick at the time, sign his name with an X when he could not even understand what he was doing. This, just after telling me how much they respected him as a Tuskegee Airman and Air Force missile expert. I have so much information about Wells Fargo and why people lost their homes, which will be upsetting and liberating. benjaminreedjr@mail.com
i lost a $154,000 home because of that glitch. Can someone please send me the info to get in this lawsuit.
Is this state specific? I recently found my old emails PROVING we qualify and responses from Wells, would like to speak to someone! We took a loss on our home just so we wouldn’t foreclose! The stress of it all even ended in depression and eventually …divorce! I live in Massachusetts but if yo would like my documentation to help someone else, I will HAPPILY provide
We where denied loan modification went on default on loan and lost the house in 2011 from Wells Fargo
Same here there was NO REASON we qualified for the modification. I recently found all my old emails and I tried writing to the lawyers but got no response. Do u know if this is a state specific case?
Please add me Wells Fargo denied our loan modification supported by the government and screwed us around then pushed our loan to FOURTY years. I would be 92 years old when we would pay it off. Majority of payments were INTEREST. WE SOLD & LOST 200K just to get out of mortgage.
PLEASE ADD ME
What you all may not know is WFB may have sold your mortgage to Goldman Sachs. Supreme Court decided they did not have to keep the original loan docs. So, Goldman sold them to their investors, who knew they were likely to become default loans, why? AIG paid investors 30x the face value of the note, which means: if an investor bought a $300,000.00 loan and the homeowner defaulted on the loan, the investor made $9,000,000.00 on the investment. Of course, they will never return your loan to the bank so that you can get that modification you qualify for. So, you keep applying , for which WFB was paid $3,000.00 per modification by the govt as incentive to process your application although they were not required to actually do so! The $3,000.00 payment had no limitations so every time you applied, they were paid the $3,000.00!