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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
I tried to get a modification on my home, filled out the paperwork send them money and I still lost my home. Can someone help me? I have moved serval times since then. I wanted to see if I qualify to get some of my money back?
Wicked Wells Fargo
I will dance and laugh the day they go down. We also lost our California home to Wicked Wells Fargo and experienced most of the horrors that have been expressed by so many other hard working families.
We lost our home in 2014 foreclosed without notice. We tried desperately to get help but no help was available.
For young families to start their lives and buy their first home, pay the mortgage for 25 years only to loose it overnight, is criminal.
We had our car stolen one night when we went out to the movies, that was the same shocking feeling when you find out and realize that something of value was taken from you. A gang of thugs stole our car and the police arrested them and retrieved our car.
Our insurance paid for the damage done to our car and it was back pretty much like it was!
When our home was stolen we found out who it was, Wicked Wells Fargo and their gang of thugs. No insurance company, no police to call.
Gangs without fear of retribution are dangerous entities, plain criminals.
One day every criminal will face judgement. People can’t hide behind a entity like Wicked Wells Fargo forever.
I lost Propertys due to loan modification there was long drawn out an never get back with me in a timely manner an I would have to start the whole process over each month.this was a nerve racking
I had two properties that I lost due to loan modification that was drawn out over long period of time.Wells Fargo would not give me a modification on my primary house,but did on my rental property!I lost the property’s an then had to file bankruptcy to protect my living quarters.
My home in Delaware was forclosed. I lost everything thanks to Wells Fargo. 30872 Vine Creek Rd. Dagsboro, De. 19939
I have applied for loan modification several times and they keep denying them without clear reason or clarification? I feel they are purposely denying my modification and have been using tactics that are unethical. Me and my husband are hard workers and have lived in our our for over 16 years. We would be most grateful if someone honest could reach out to us and help us save our home. Thank you.
I lost my home in 2017 following a keep your home california grant. No one ever told me i was at fisk of loosing my home, in fact they reassures me i would be fine. I never spoke to the same person twice and no one really had the correct answer. Not even 30 days after i was to be moved to another phase of the kyhc act wells fargo reffered me to forclosure. They didnt tell me about loan modifification or anything when i did find out they foreclosed on my home and put it to auction before any thing could be done. I tried postpone long enough for them to review but they ultimatly forclosed anyway. Even now when i asked what could be done they sent me a packet of lies and mistruths of the events. I have a recorded conversation between me and the execitive officer the night before they were going to auction stating he still didnt know if i was to be approved for a loan mod…the night before auction n i was a single mom with no answers. . i lost my home n my kids for months i was in a homeless shelter.
They are trying to foreclose on my home for a botched modification….
I lost my home in 2010 and had no choice but to foreclose and file bankruptcy.. sounds like that was a bad year for alot of us ; (
Ya I l o st my home of 16 years for 8800 bucks. The same people that could have put the auction off were the ones that could help me fix the problem. I tried for 5 months. Then I just gave up. Lost everything.
Yo nesesito ayuda por favor mi nombre es maria lopes mi número es 7133776180
The same situation happened to my wife and I in Californiaexcept once again through faulty mass how do I sign onto these lawsuits who can I have look at them how do I find a good lawyer that can help me understand your situation