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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
While trying to get MY house in a modification my loan was transfered to SLS within 2 weeks my loan was jst extended to 40 years and my payments remained almost the same thank God didn’t loose my house but I struggled to keep it by working overtime and all the stress because I had jst lost my rentals I had to foreclosed..
Add me please I had a well Fargo home loan home was taken with pad lock on the door had nightmares for years because of this ordeal that left me homeless this really affected my health, I took care of foster kids plus a home daycare out of my home ?
Lost my home in 2019 please include me in.
Add me I also had a Wells Fargo home loan.
add me
Just making sure I get in … My family’s home of 20 yrs was stolen by Wells Fargo in 2011…While we were waiting for a loan modification! When I finally talked to a person she said my home was sold the week before!! No notice !! 5 kids! Thank you , Tammy Lorenzo
tlorenzo5070@gmail.com
US Bank has done to me the same exact fraudulent & unfair practices you all discribe and they stole my home, too.
Unfortunately when I filed a lawsuit against them the CA Bar Assoc law firm I hired were crooks, as well.
Now I have no home plus out of the $40K I paid for an attorney who uncompetent, failed to submit all my evidence nor even appear in court to represent me when required.
No money to fight either of them now.
Who can I get to investigate US Bank & start a class action against them?
Please add us to this lawsuit. WFB did not handle our loan mod appropriately. After 18 months of being in a trial. They said that we failed out of modification and gave us a foreclosure default notice. They apparently reapplied all of the trial modification payments to oldest mortgage payments that would have been due which left us with a huge balance owing to the bank of $21, k. Only after calling wfb incessantly week after week and asking for updates did we receive a letter indicating the actions above and that we had 10 days to cure our loan. We We’re lucky enough to borrow the money from multiple sources but to this day we are still paying payments back to those that we borrowed the money from. A year after our loan was current they sold our loan to loan care. And even though we ended up being able to bring our loan current it still was inappropriate and unfair and caused us great emotional distress. Still affects us financially today. Shame on them.
Add me. Wells Fargo was supposed to be helpful but not. I asked for a loan modification which they did not offer. I had to find out by someone who use to work for them. On top of her giving me some helpful information she got fired. After I asked for the loan modification they so called helped me by giving me a loan modification and raising my mortgage. Then my mortgage was no longer fixed. It fluctuated from month to month. I had to eventually do a short sale. The most depressing and emotionally experience I have ever went through.
My husband died in 2009. 59 days after being diagnosed with cancer. Wells fargo told me my name was not on loan and refused to talk to me or assist me. This was a VA loan. I received not help to stay or keep my home. I and myminor children were evicted. I attended every foreclosure hearing. My WF mortgage docs were robosigned. Sign me up. I went crazy.