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A federal judge in California has certified a national Class of Wells Fargo mortgage customers who claim the bank denied them mortgage modifications, despite meeting the requirements for the Home Affordable Modification Program (HAMP.)
Numerous plaintiffs filed this class action lawsuit in December 2018, claiming they lost their homes to foreclosure after they were unfairly denied the loan modifications.
They allege that a calculation error by Wells Fargo caused certain fees to be misstated, which resulted in incorrect loan denials.
The judge rejected a proposed subclass of homeowners but decided that the court will look into the value of the equity lost by each homeowner on a nationwide Class basis.
“Losing your home through a foreclosure is one of the most disruptive events that you could experience,” the plaintiffs state in their Wells Fargo class action lawsuit.
The plaintiffs argue that Congress set aside $50 billion in funding for HAMP, which was created to make sure people were able to keep their homes and provide stability to homeowners during dark economic times.
The Wells Fargo class action lawsuit claims that the defendant accepted $6.4 billion in HAMP funding and developed its own tool to calculate the eligibility of the borrowers.
The bank admitted that their tool miscalculated the claims which led to more than 870 borrowers to be denied HAMP money, even though they qualified for the modification program, according to the plaintiffs
The bank also admits that it foreclosed on 545 borrowers who should have been granted HAMP funding.
Plaintiff Alicia Hernandez claims her house was foreclosed, although she should have qualified for a loan modification program under HAMP. She alleges the bank sent her a check for $15,000, which informed her of the bank miscalculation error denying her the loan modification.
The plaintiff claims that the check was accompanied by a letter explaining how Wells Fargo determined the amount of the check and assured her that the amount should “make things right.”
The judge in his order states that other plaintiffs, notably Debora Granja and Sandra Campos, are typical of the proposed Class. The court notes that Granja signed a Fannie Mae/Freddie Mac contract and Campos signed a Federal Housing Administration (FHA) mortgage contract.
The judge notes they were harmed when Wells Fargo did not tell them that they could fix a default on their homes with a HAMP loan modification, and then foreclosed on their homes.
The judge certified the following nationwide Class: “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 decision process; and (iii) whose home Wells Fargo sold in foreclosure.”
The complaint alleges breach of contract, intentional infliction of emotional distress, violation of California’s Homeowners Bill of Rights, and violation of California’s unfair competition law.
Do you have a mortgage through Wells Fargo? Leave a message in the comments section below.
The plaintiffs are represented by Michael L. Schrag, Joshua J. Bloomfield and Linda P. Lam of Gibbs Law Group LLP and Richard M. Paul III, Ashlea G. Schwarz and Laura C. Fellows of Paul LLP.
The Wells Fargo Mortgage Class Action Lawsuit is Hernandez, et al. v. Wells Fargo Bank NA, et al., Case No. 3:18-cv-07354, in the U.S. District Court for the Northern District of California.
UPDATE: On March 19, 2020, a judge rejected Wells Fargo’s effort to stay a class action lawsuit, saying the bank did not notify some borrowers about mortgage modification options.
UPDATE 2: May 2020, the Wells Fargo mortgage class action settlement is now open. Click here to file a claim.
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88 thoughts onWells Fargo Wrongful Foreclosure Class Action Lawsuit Gets Certified
Wells Fargo started scamming me by cashing my checks late starting in September, 2005, and then charging late fees. I had called numerous times to complain, but nobody was helpful or understanding. By January of 2006, my checks were not being cashed. After that, I received a demand bill from Wells Fargo stating unpaid monthly mortgage payments and late fees. The ridiculous amounts of late charges imposed on me by Wells Fargo not cashing my checks was fraudulent. After that I got a letter from Wells Fargo stating that they were going to foreclose on my home. I was forced to file for bankruptcy. At the bankruptcy court, the judge was unfair to me. I found out that he sat on a bankruptcy board with the lawyer who represented Wells Fargo. At one meeting, the lawyer from Wells Fargo demanded an additional $500. from me for Harmon Law. I asked what the payment was for, but did not get an explanation. I was told to just pay the fee, or else I would be out of bankruptcy compliance with the court and Well Fargo would foreclose on my home. The judge was corrupt! I was scared, so I paid the demand. I had toddlers and hoped to save my home. Along with the bankruptcy filing, I tried numerous attempts at trying to find a way to refinance my home. Nothing worked! To make matters worse, about a year into my bankruptcy, my attorney lost his license to practice, forcing me to start over and hire a new attorney, costing me more money. Before the bankruptcy was over, I hired a real estate agent to sell my house. She had a buyer, but was unable to get the paperwork from Wells Fargo to complete the sale of the house. To add to my worries, my husband was diagnosed with stage 4 cancer, during all of this. Shortly after the bankruptcy period was over, my family’s home was sold with an auction on my lawn. A sheriff came to my door, and demanded that my family move by the week of Christmas. I had children and a dying husband to find shelter for. I had to box and move all of my family’s belongings. There was not a Christmas celebration for my family that year. My husband passed away a few years later. My daughters who are now teenagers suffer from anxiety from the trauma of what we went through. I am also sad and still wonder how Wells Fargo was legally able to get away with scamming my family out of our home.
I have a mortgage with wells fargo. they have filed with a debt collector and with the sheriffs office sending me foreclosure paperwork.
My family and I lost our home of 27 years by wells fargo. We weren’t notified or aware that our house was being auctioned away until someone knocked on our door the week of Christmas saying “this is my house now, you have until January 15th to get out”.
I had a mortgage with Wells Fargo Home Mortgage that has been sold after foreclosure proceedings and hefty attorney fees. I also have a HELOC with Wells Fargo Bank that is in arrears. I would like at least the HELOC reviewed for inclusion in a class action lawsuit for predatory lending.
Well Fargo foreclosed on my home and put my family and I on the streets. The bank locked us out. 404 510-6222
Hello I had a loan with Chase bank back in 2008 they increased my payment by 400 due to two forced hazard policies they attached to my mortgage even though I had a policy with state farm fully paid the whole year in advance. It took them a year to give credit for one policy and I finally got them to give me a making home affordable modification. I made not three but four modification payments to ensure a permanent modification. Chase returned my western union payment which was my third and complete on time my extra / 4th payment and they denied my final modification based on failure to make modification payments and proceeded to foreclose they sold my house in 2010. I never intended to have a loan with Chase I was baited and switched. The agent I was working with had lost his job unknown to me and received a kick back for giving my loan to another agent. He held us of told us we were locked in and we could spend our reserves he also disguised loan origination points as discount points on cashed loan . Our quotes and communications were thru emails that I still have. They prove we disgusted Countrywide refinance not wamu infact I refused wamu chase and it proves he tried to steer me in the direction of a max of two point purchase which is less than I wanted to purchase. Come to find out two point purchase is the max for loan origination points allowed. This is why he wanted me to buy no more than two points. It’s all in my email communications . Ont the day he brought our loan to our house she sent another person we never met before with wamu chase documents knowing that we had a week left to sign before our paperwork and credit report checks would expire and we had already been told we could spend our six months reserves. So he put us in a position that we had to review the loan docs and basically sign the chase loan we didn’t want or we wouldn’t be able to be approved by loan underwriter for refinancing before our credit check expired and would have to show reserves again. Once the loan was signed I question the interest rate and the points we purchased but was ignored and could do nothing about it I was stuck with wamu and 7000 of point purchase intended for discount points was given to him for loan origination points and gave me no interest rate discount .Again i assure you I can prove this and still have email communications and countrywide estimates proving bait n switch as well as point purchase and refusal of chase wamu loan expressing interest in countrywide refinance only also showing interest in more than two point purchase. I noticed the years you Wells Fargo case falls within the years I was wronged and would like to know if I could also file a law suit even though it has been more than three years since this occurred.my loan refinance was in 2007 but my wrongful foreclosure was in 2010 please advise if this lawsuit is a possibility .
I lost my home in 2012. Wells Fargo had me apply for every program months would go by and they would deny me but then tell me to apply fir something else. Eventually left because they told me sheriff would kick me and my family out. Sent a guy from wells Fargo thunk he was an adjuster and he told me to leave the house wasn’t worth it because if mold in the kitchen.
My parents home was foreclosed on by Wells Fargo without them ever being notified. I tried to get an attorney to help but was told that it would cost them over $7000 up front.
I lost my home in early 2006 with a home loan that was granted and foreclosed on by Wells. The loan was initiated in 2004. I was out of country and had asked for a 30 day forbearance that was supposedly granted over the phone. I went to the bank 28 days after my last mortgage payment was due, the day I arrived back. With the cash in hand to pay past, present, and future months payments. I was told by my loan officer that had granted me the forbearance, that the home was already in the foreclosure process and there was nothing he could do about it. I spent 6 months and thousands dollars fighting it. I used the loan officer, relator, title company and attorneys to help me fight. I was eventually counseled that my efforts were futile and to just take the hit. 36 months later to the day I was served with papers from the USDA stating I owed them $96K for a loan that had been secured by the first time home buyers act and sold to Fanny May. Wells had long since auctioned off my property, I had zero leverage and had never received any notice prior. Another 4 months and again thousands in legal conciliation fees. I had to file bankruptcy in 2009, as they were garnishing my wages and froze accounts I had at other financial institutions. It literally wrecked my life at 24 years old. I thought I had done everything right, had good mentorship, and a friend at Wells that could get it done. I completely lost faith in our financial systems, government, and main stream society. The loan officer who had had be involved with my case from day one was found dead at his home from apparent suicide one week later.
I lost my home due to forbearance agreement
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