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A class action lawsuit has been filed against Wells Fargo Bank NA alleging that the mortgage lender unlawfully “corrected” agreements for thousands of customers’ Wells Fargo home loan terms. Plaintiffs have accused Wells Fargo of altering maturity date on loans, a change they claim damages home values and marketability for mortgage holders.
The complaint was filed by Philip and Ingrid Tippett of Florida. The Tippetts claim that Wells Fargo unlawfully changed the maturity dates on their home equity line of credit after realizing it had failed to set that loan to terminate after the mortgages’ final maturity date. According to the class action lawsuit, failing to adjust these dates would have resulted in the debts becoming unsecured – increasing the bank’s risk that they won’t be paid.
However, rather than informing customers of the mistake so that they could authorize a change, Wells Fargo allegedly took it upon itself to unilaterally file thousands of documents meant to “correct” the maturity dates in order to make them compliment the home equity loans. These documents are reportedly referred to by Wells Fargo as an “affidavit of correction.”
“Wells Fargo acted unilaterally and without authority. Our suit seeks to undue the wrong they did,” the plaintiff counsel told Law360.
The class action lawsuit argues that these changes damage the titles of the homes tied to the mortgages. This damage, in turn, reduces the homes’ property value and marketability, according to the complaint. These unauthorized changes allegedly constitute a criminal offense under state laws in Michigan, Colorado, California, Florida, Pennsylvania, and possibly other states.
The plaintiffs are asking the court to determine the validity of the affidavits. They hope to receive a ruling that these documents are void and of no effect. They also wish for Wells Fargo to withdraw the documents and for the court to prohibit the institution from filing similar documents in the future.
According to the Tippetts, in 2003, they were told by bank officials during finalization on a $100,000 mortgage agreement that if they applied for a $25,000 home equity loan, they wouldn’t need to pay out-of-pocket for a down payment on their home. By the time the loan documents were finalized, the Tippetts had reportedly agreed to a first mortgage, a second mortgage lien, and a home equity loan secured by the mortgage.
Under the agreements, the Tippetts were allowed to draw from the line of credit relating to the home equity loan until Oct. 9, 2013. Depending on the balance, the repayment period for that loan was allegedly set to reach a maturity date of either October 2028 or October 2043.
However, roughly six months before the maturity date of the home equity loan, the bank allegedly filed an affidavit of correction.
The affidavit sought to amend the maturity date of the second mortgage from October 2013 to October 2043, according to the class action lawsuit.
The plaintiffs say that this document was filed on April 2, 2013 in Marion County, Fla., where the loan was issued and is still attached to the couple’s Florida home chain of title. The couple says that this change caused them financial harm.
Wells Fargo allegedly failed to notify the couple about the amended maturity date, either before or after it filed the affidavit amending that date.
The Tippetts claim the mortgage lender acted without their consent or consideration. Due to the alleged secrecy with which the affidavits were filed, the couple argues that the statute of limitations in this matter should be tolled.
“No reasonable person would have a reason to review whether Wells Fargo had recorded any instruments, much less fraudulent instruments, regarding their properties,” the Wells Fargo home loan class action lawsuit reads.
“Wells Fargo actively concealed the filings and knowingly and purposefully failed to seek consent and authorization from plaintiffs and the class members.”
The plaintiffs are seeking to establish a nationwide Class of borrowers in similar situations. Class Members include bank customers fitting a few requirements: they must have obtained a home equity line of credit loan; the Well Fargo home loan must allow the customer to access a revolving line of credit that is secured through a second mortgage lien; the second mortgage lien must later be amended by an affidavit of correction meant to change the maturity date or other terms of the mortgage. According to the Tippetts, this Class could include thousands of potential members.
They also hope to establish a subclass of borrowers who obtained loans in Florida in order to seek injunctive relief regarding the allegations that the mortgage lender violated state laws. The Tippetts estimate that there could be hundreds of borrowers who are eligible to join this Class.
The Wells Fargo class action lawsuit also makes note of several other controversies that Wells Fargo has been involved in over the last 10 years. The class action lawsuit describes a variety of deceptive lending practices including instances in which the bank unilaterally modified Wells Fargo home loan repayment terms, or failed to seek authorization before opening sometimes unnecessary accounts on behalf of their customers.
If you received a second Wells Fargo home loan securing a line of credit only to have the bank amend the terms of that loan via an affidavit of correction, comment about your experience below.
The Tippetts and the proposed Class are represented by George Franjola of Law Office of George Franjola, as well as Benjamin J. Widlanski, Rachel Sullivan, and Robert J. Neary of Kozyak Tropin & Throckmorton LLP.
The Wells Fargo Home Loan Class Action Lawsuit is Tippett, et al. v. Wells Fargo Bank NA, Case No. 5:20-cv-00342, in the U.S. District Court for the Middle District of Florida.
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60 thoughts onWells Fargo Home Loan Class Action Filed Over Date ‘Corrections’
Add me to this.
Add me. I also was a victim of Wells Fargo Home Mortgage for all of the above.
Add me to the list Wellsfargo cooked the books and fabricated documents three different activity sheets with different entries for the same month.
My loan was matured on 12/2017 from Wells Fargo then it was changed to 2056 now I do not get statements for the past two months. What does that mean?
This happened to me prior to WFHM selling my mortgage to a new company after being with them for approximately 12 years. They also started FC when they had no right & there was no reason, they denied a loan modification as well but not only denied it they stated they never got documents which isn’t true and after escalating to office of the president is what they called it they told me I would have one POC to fix and handle things that were so fraudulent. They also told me that they don’t work with any third party programs such as SOHAZ which is a federal government program and they lied because they do in fact work with that program amongst so many others. As I went through the process of doing a recast and keeping my home they threatened me non stop about FC and listed it everywhere online and I was being harassed by people that saw my home posted as a FC and it wasn’t and it stated the date and location and people started driving by my house and 2 tried to enter it, they tried to break my front door lock while I was at home and I live in a gated community, my home was never to be in FC and they know it. They started sending statements that were wrong and I went to my local AG office, my local state senator, the department of housing was on them telling them I am in the process of being approved and to stop all of this. There is so much more they did and I went through almost 2 years a nightmare. When they finally did the recast they got paid every single penny plus more, they didn’t do the recast accurately, they promised me they reported me current to the credit bureaus and didn’t, they ruined my credit, I had to call and fall and file with the CFPB and you name it I did it. They tried to say my first payment after the recast and after they got over 100K was to start 2 months earlier then they committed to so sent me pages and pages of statements that made no sense, they argued with me and lied and I overnighted all I was supposed to and they said they didn’t get it and I had the tracking and name of who signed for it.
This was during 2015-2017 and after all said and done while they put me through pure pure torture and it was like 3 full time jobs for me to stay on top of each thing they did and have 4 boxes of the entire nightmare that never should have started in the first place I pretty much lost my mind. I got it escalated so high up and finally got them to report me correctly (minus two months) as I couldn’t take all of this anymore. Not sure most could and I was sick at the time and caring for my elderly mother.
I could write so much more, but if any is this is relevant how do you get in contact regarding this? For me? Thanks
meant to say also that inspections were done I knew nothing about. No one came inside my house, no one told me why & when and also told me I needed to contact the trustee to get FC details. Why would I? I shouldn’t have been put in FC there was no reason, my situation wasn’t at that issue, I eventually stopped paying because of what they were doing and told them I’m not paying until they stop all of this and then told me to do a short sale. Eventually I considered it and I was told that there were funds to get it that happened to move – moving costs and I said I haven’t signed a thing, I’m asking what the amount is, then was told $0 and found out they talked to a realator who I met with about the possible short sale and talked private details about my finances and also told her to send me a document stating I must sign an offer agreement and there is no program as I mentioned when there was- the department of housing and the hardest hit fund was working with me and them so they were lying and lying and as we all know back then SOHAZ / Department of Housing / Hardest Hit fund government program was all there and they did it day in and day out and preteneed they never heard of it and do not again participate in random third party or work with any. Nuts!
And btw I still live in my home and when they sold it in 2019 they didn’t handle the transfer accurately and I made a payment to them and they never transferred it as my “new payment” “first payment” to the new bank.
I posted a few posts and am curious as to if you make contact with me if you have questions / next steps etc.? Thank you – Jodi
Have multiple dealings with W ells Fargo, How do I get started to get some justice?
Add me to the list. Wells Fargo did a modification in 2015 and added 40 years to my loan which should mature 2039 instead of 2049. my loan has since been sold to Rushmore management. 2049 maturity date was not on my signed paperwork.