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Wells Fargo should pay an extra $22 million to compensate additional mortgage customers who lost their homes when the bank wrongly denied them loan modifications, after an $18.5 million deal was struck with initial claimants.
A judge gave early approval to the supplemental settlement between Wells Fargo home loan borrowers and the bank, after the court became aware of more Class members, Law360 reported.
The plaintiffs allege they were wrongly denied loan modifications due to a software error, which forced them into foreclosure.
U.S. District Judge William H. Alsup said the more-than $21.8 million extra settlement is to cover an additional 741 Class members that weren’t included in Wells Fargo’s first list of borrowers provided to the court. The initial settlement is for $18.5 million.
“After new class members were identified, the parties agreed to the supplemental settlement which provides new class members compensation for economic harm using the same formula as in the first settlement,” Judge Alsup reportedly said.
“The supplemental settlement also provides new class members the same opportunity to apply for additional settlement amounts for severe emotional distress.”
The class action lawsuit alleges that, from 2010 to 2018, homeowners who should have qualified for a home loan modification were denied assistance due to a software error.
The bank said it discovered the software flaw in 2013, but a related error persisted through 2018, continuing to impact customers.
The bank made the information public, sent apology letters to affected homeowners and offered between $5,000 and $15,000 to some, the settlement reportedly says.
According to the settlement, Class members will get a portion of the millions depending on the estimated value of the property they lost due to the bank’s software error. It is estimated each home loan customer will get between $14,000 and $120,000, Law360 reported.
The settlement also includes $1 million for those who experienced “severe emotional distress” due to losing their homes.
Wells Fargo is the fourth largest bank in the United States based on assets. The financial corporation has often found itself facing consumer backlash regarding alleged unfair operations of the bank, potential unethical practices, and more, which have resulted in a range of class action lawsuits being filed.
The Wells Fargo lawsuit filings follow claims of the bank unfairly repossessing property, customers receiving mortgage forbearances they didn’t ask for, customers being wrongfully denied home loan modifications, and more. Click here for the latest Wells Fargo class action lawsuits.
What do you think about this settlement with Wells Fargo? Let us know in the comments!
The borrowers are represented by Michael L. Schrag, Joshua J. Bloomfield and Linda P. Lam of Gibbs Law Group LLP; and Richard M. Paul III and Laura C. Fellows of Paul LLP.
The Wells Fargo Home Loan Modification Error Class Action Settlement 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.
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143 thoughts onWells Fargo Should Pay Extra $22M to Additional Customers Who Lost Their Homes Due to Software Error, Judge Says
I had to file ch 13 to save my home , they gave me the run around when all i asked was to pay extra a month to catch up on $1000. past due. and I was never notified there was a law suit.
I should have been notified and I wasnt. They foreclosed on my home sold it in two weeks. I jump through every hoop and they said oh sorry you missed a deadline that was yesterday. They were horrible, horrible. Wouldn’t except my mortgage payments, sent them back it was traumatizing. My credits ruined. I cant use my va loan and they literally ruined our lives. Wouldnt accept modification because my ex and I both are military and his name waa primary, would not accept a modification with my power of attorney. Wanted total payment if a moritoriam after Katrina ripped us apart and I out 350k in to fix it. They sold it for 82k what I owed.
They stole my home. I’m renting and its awful with a family of 8 and three disabled children. It is a horrible nightmare that I can’t wake up from. 2015 the stole my home. I want in on this restitution. I was not notified.
I also had a VA home loan and Wells Fargo took $7500 in extra payments from my bank account, I had an auto draft set up with. The bank could never explain why my mortgage pretty much doubled on a 30 years fixed rate loan. They just told me my only option was to request a modification and then kept asking me to resubmit my loan modification application. I physically went into the wellsfargo with all my paperwork and asked to speak with someone and was told I couldn’t speak with anyone in person and to call to same phone number that refused to help me. I don’t understand how they where able to do this to so many people for so many years without anyone doing anything.
I should have been notified of this glitch, I also lost my home.
I should have been on this list also. Lost my home in 2013. How can I get more information
How were the new class members discovered or notified? I should be on the list …but nothing
I called the Wells Fargo number provided and they just read some statement and said they may send me something. It seems ridiculous they are having Wells Fargo determine how they wronged. I don’t think they have much incentive to find people how they stole there homes from.
My home was lost even after a family member offered top pay off the entire balance to me and loan me the money thru a family transaction. Wells Fargo got dozens of copies of my financials and I dealt with some new person each time who did not have notes and it was by systemic design they defaulted after being bailed out by and with tax payer money. Wells Fargo’s entire mortgage division is allegedly run by morons and incompetent people and I was one who lost 250 000 in equity on a home I had paid down on for years. Wells Fargo does NOT care about anyone and the internal slogan was “we shaft the consumer, the employees who work with the customers face to face and we very much shaft the share holders. Guys like Warren Buffett who owns 10 % of this bank doesn’t care either and it is a bank that will go belly up eventually since most of the states have lost over 50% of their branches. They OWE ME 250 grand from 2011 and at 9% interest that is now well over 700K.
In 2017, we tried to save our home that was with Wells Fargo. We had made many calls to Wells and were told us they were working on helping us save our home. They told us that we had been approved for the Modification/Refi but it had to have 2 approvals. When I called the next day, they said “we’re sorry, you home was sold this morning.”
Knowing we were halfway there and waiting on them (Wells) to advise us on what was outcome of the 2nd approval, they could have stayed the sale, cancelled or postponed the sale date. Instead we were deceived into thinking they were going to give us the Modification we were asking for. This was a deceitful, unfair and insensitive act on their part. We don’t want to have another account with Wells Fargo again. We will never trust them after this terrible experience.
Wells Fargo refused to give me a loan Modification in 2009. I went through too other sources and then tried by myself! (No response from Wells Fargo but refusal). I had to file an emergency ch 7 to stop my home from going to Auction! I lost the home in 2010 by doing a short sale in 2010. (Where was my apology letter)?! Do I have unclaimed monies from the lawsuit in CA in 2021?
I was a single mother of 2 and loss my house due to a denied loan modification in 2011. Please add me.