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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
Please send me Class Action Lawsuit info about Wells Fargo…..
We have delt with Wells Fargo’s bullshit since 2009! We were in one of those god awful pick a pay loans that went up about $200 per year. We have been in our home for now almost 17 years. We have fought them tooth and nail, with several different attorneys and finally , thanks to my own efforts, we got a deal. After I threatened to whistle blow them on 14 broken laws and 26 violations. It still doesn’t help the fact that we had to pay out much more than we should have, and that they should have done this years ago, and tens of thousands of dollars ago! We are now going to sue them in Federal and Civil court. We were even interviewed by the wall street journal. We are far from done with those monsters. They will get theirs! I would also like to be instrumental in helping others that they wronged as well if possible. I hope the law office calls me so I can give them my full story!
Wells Fargo home mortgage wrongfully foreclosed and sold our home at auction after denying us a loan mod. We came up with the funds to bring our loan current however the refused our payment stating that foreclosure fees an attorney fees needed to be added into our delinquent monthly payments before they could accept our payment which we requested the amount so we could remit payment however they failed to provide it to us and kept refusing the payments their letter claim needed to be paid to stop foreclosure and proceeded foreclosure we were able to stop the first sale date by providing them With out proof of funds to bring loan current they refused to accept payment giving ya same story need to add attorney fees an foreclosure fees they needed to get from foreclosure attorney before they could accept any payment from us an sold our home at auction at a later date without providing us with a total amount needed after requesting for it in writing and by telephone numerous times for almost two months after providing proof of our funds they proceeded to reschedule sale and sold our home at auction while I was on the phone with them at the exact same time that they auctioned and sold my home Anyways after we had Already paid 20 yrs on a 30 yr loan an we’re two payments behind because of two unexpected deaths we were financial burdened with yet managed to come up with funds to bring loan current but the refused to accept our payment even in person
I have been trying to get a loan modification from Wells Fargo since 2012. Hired at least three different attorneys to keep from being foreclosed on AND still trying to keep from being foreclosed on. I have filed bankruptcy trying to buy time to figure out how to keep my home. I have boxes of paperwork with correspondence with Wells Fargo. They have now transferred my loan to a debt collector and I’m still fighting with them. All started when my husband passed and I’ve tried to keep my house. Shame on Wells Fargo!!!
I also was charged excessive legal fees which I believe caused me to be ineligible for HAMP when I should have been eligible. My question is wether this class action lawsuit is only for California residents, I live in New Mexico.
I do ha Wells Fago home loan
Made modified payments and they still stole my house.
I lost my home due to several different types of reasons sated by many different people throughout scanning reading these stories and statements and there are so many routes to go with these issues!!! Where is the most important and logical reasoning in search for retribution for lost time money anguish ptsd trauma I have been working my whole life and I am an able body American Citizen and the single worst decision I felt like I ever made was buying a house from Wells Fargo and it is going to either haunt me or raise me up so? Which is it going to be!!! How can I get the help I need cash money wise to do something with my life that is efficient in the effort of recovery ???? when it comes to the amount of time I have been dealing with this and how much time should I be paid for in healing and recovery and what is the cost of such a tradgedy and I don’t know what to do about it so I’m hoping to get anyone to give me the right feedback and point me in the right direction to get my life back together after being taken advantage of and stolen from and having Wells Fargo commiting fraud against me and my ex-wife!!! All the time I have been wondering what the Hell happened to the original plan and why I received false information on selling and loan percentages plus payment fluxuations during the time I owed the bank and under these circumstances and many other things I have to say Why’s it like that!!! WTF??? And I find out im dealing with a fraudulent company!!! Wtf twice!!! Then they really really piss me off with a 700 something dollar check telling me that the government told them to pay me and my ex-wife for there wrong doing in fraudulently over charging us!!!!!!!!! What further needs to happen and where is the most totally important resolve!
My mother lost her home. I tried making contact with this and they claimed there’s no record. I have proof.
We lost our home in December 2010. Our loan was securitized in a Freddie Mac trust. Wells Fargo was the servicer. They have no standing, for they are not the holder in due course. I tried to modify our loan for months and was told several times we were approved for HAMP, but never received the final paperwork. I told them it was illegal to foreclose on us while we were in review for HAMP, and was told they were foreclosing on us anyway. Went to court to fight the unlawful detainer and asked the judge to enjoin our case with our civil case in another court against WFB. The judge denied it and gave us 2 weeks to vacate. We would like to join the class action lawsuit.