Wells Fargo has agreed to a $6.9 million settlement benefiting certain mortgage loan borrowers.

The settlement agreement establishes two Classes:

  • TILA Class: Anyone in the United States who entered into buydown agreements with Wells Fargo in residential real estate mortgage transactions within one year prior to the filing of the initial complaint, and in those agreements Wells Fargo disclosed in the borrower’s loan closing disclosure a lower effective interest rate for an initial period followed by a higher interest rate for the remainder of the life of the loan and as to whom, during the initial period, Wells Fargo amortized the loan at a rate higher than the lowest disclosed effective rate.
  • Breach of Contract Class: Anyone in the United States who, during the Class Period, entered into buydown agreements with Wells Fargo in residential real estate mortgage transactions in which Wells Fargo disclosed a lower effective interest rate for an initial period followed by a higher interest rate for the remainder of the life of the loan but, during the initial period, amortized the loan at a rate higher than the lowest disclosed effective rate.

A buydown agreement, also known as a “buydown deposit agreement” or “FHA/VA interest rate buydown plan,” is an agreement that lowers the effective rate and required monthly payment for up to the first three years of the borrower’s residential mortgage loan. 

Each Class Member can expect to receive a minimum of $50 for each buydown agreement. A settlement benefits lookup tool is available on the settlement website. An estimate can also be obtained by calling the settlement administrator at 1-833-916-3596.

Those who do not request to be excluded from the Class will receive a check from the settlement administrator.


However, Class Members whose estimated settlement payment is $600 or more is required to provide an Internal Revenue Service (IRS) Form W-9 in order to be eligible to receive a check.

The Form W-9 can be filed electronically by entering the unique “Class Member ID Number” found on the first and third panels of the postcard notice mailed to Class Members. Those who can’t find their ID number should contact the settlement administrator.

No payments will be sent out until after the settlement receives final approval and all appeals are resolved.

A final approval hearing in the Wells Fargo buydown agreement settlement will take place July 27, 2021.

The deadline for Class Members to exclude themselves from or object to the settlement is June 6, 2021.


Who’s Eligible

The settlement agreement establishes two Classes:

  • TILA Class: Anyone in the United States who entered into buydown agreements with Wells Fargo in residential real estate mortgage transactions within one year prior to the filing of the initial complaint, and in those agreements Wells Fargo disclosed in the borrower’s loan closing disclosure a lower effective interest rate for an initial period followed by a higher interest rate for the remainder of the life of the loan and as to whom, during the initial period, Wells Fargo amortized the loan at a rate higher than the lowest disclosed effective rate.
  • Breach of Contract Class: Anyone in the United States who, during the Class Period, entered into buydown agreements with Wells Fargo in residential real estate mortgage transactions in which Wells Fargo disclosed a lower effective interest rate for an initial period followed by a higher interest rate for the remainder of the life of the loan but, during the initial period, amortized the loan at a rate higher than the lowest disclosed effective rate.
Potential Award

At least $50.

  • Each Class Member can expect to receive a minimum of $50 for each buydown agreement.
  • A settlement benefits lookup tool is available on the settlement website.
  • An estimate can also be obtained by calling the settlement administrator at 1-833-916-3596.
Proof of Purchase

No proof of purchase is required.


IRS Form W-9

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

No claim form is required.

Case Name

Alejandro Carrillo, et al. v. Wells Fargo Bank, N.A., Case No. 2:18-cv-03095-SJF-SIL in the U.S. District Court for the Eastern District of New York

Final Hearing

07/27/2021

Settlement Website
Claims Administrator

Buydown Settlement
c/o JND Legal Administration
P.O. Box 91345
Seattle, WA 98111
1-833-916-3596
info@BuydownSettlement.com

Class Counsel

Beth E. Terrell
Jennifer R. Murray
TERRELL MARSHALL LAW GROUP PLLC

Daniel A. Schlanger
SCHLANGER LAW GROUP LLP

Defense Counsel

Lucia Nale
Debra Bogo-Ernst
MAYER BROWN LLP

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Please note: Top Class Actions is not a settlement administrator or law firm. Top Class Actions is a legal news source that reports on class action lawsuits, class action settlements, drug injury lawsuits and product liability lawsuits. Top Class Actions does not process claims and we cannot advise you on the status of any class action settlement claim. You must contact the settlement administrator or your attorney for any updates regarding your claim status, claim form or questions about when payments are expected to be mailed out.

1 Comment

  • MisterCybe April 22, 2021

    See comments about North Central Zone Banks…………

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