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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
My wife and I should have been included in the class action lawsuit against Wells Fargo. We have been denied modifications every since Wells Fargo took over our loan. Wells Fargo sent us a 1099c cancellation of debt, but put the cancellation on our mortgage as a second. Someone please take a look at our loan paperwork. Wells Fargo sold our house in a short sale.
I was told that Wells Fargo had my best interest. Not too get a loan modification from a different bank. Wells Fargo promise me that if I did what was called a forbearance, which was a payment for $1,700 for 3 months, which I did on time, they promised me a loan modification and I would stay in my home. Unbeknownst to me, my friends saw my house at the courthouse that it was going under foreclosure. And they hired someone to go in my window to see if I was there while I was working. The place was furnished. They could have just called me. My fiance left me oh, I had no place to live, I had bad credit because of them, I am still going through the pains after losing everything that I worked for. The pain of being 47years old without a wife and no children I wish that not on anyone. All this happened to me because of Wells Fargo and there criminal ways. I’m getting sick just recording all of what happened to me. can someone please get in touch with me at tony. platinumpainting@gmail.com
I’m also a victim of Wells Fargo loan modification scheme from 2009. I went through 3 trial loan modifications. Didn’t miss one payment! Received a letter stating by mortgage would be modified to the amount that my trial modification was. When I received the modified mortgage papers, the mortgage amount was not the modified amount. It was higher than the original mortgage. When I called about the new mortgage payment. Told it was to late the house was already in foreclosure! Wells Fargo ended up with my home at a Sheriff sale. Besides already being a permanently disabled women, they also illegally hired someone to enter my home and removed a lot of possessions that were very important to me. I tried to get them back, but was told it was all trashed & wasn’t worth more then $500. NOT TRUE! I had several antique PCs. The roll top desk alone was worth over $1000. I really would like to see some justice. I’ve lost everything because of their illegal actions. Please add me
You have a SCARILY identical situation to me! I think that there are MANY people who still weren’t identified! This is such a nightmare. Wells Fargo has caused tragic situations. And I’m noticing MANY single women were targeted.
The same thing happened to me! How do I get added??? Somebody please help me I am so confused I don’t know how to be put on the list
That is the same thing that happened to me. Loan modification was MORE than my house payment.
How can Become part if this. I knew that they were not doing the process correctly. . I am another person that life has spiralled because if them foreclosing. I saved for years in order to be a homeowner, only to be taken advantage of. Mental and physical health issues and homeless with 3 kids because if wells fargo. I still havent returned to a life I once had.
They seem to have targeted single women. New class action needed since many people who should have been covered by this settlement still aren’t listed!
Wells Fargo had me go through the modification process telling me at each step that I was approved but I had to stop making my payments for the final step. Then after 3mths of missed pmnts they said I was denied and the only way we could keep our house was to sign a new Mtg that was a 40yr loan instead of the original 30yr. We declined and got an Atty. They threatened us with foreclosure but couldn’t find our original Mtg and then realized it had never been recorded with the county. So what was there solution…. to try and foreclose using another banks info that the Satisfaction had not been recorded. Basically they committed fraud. I got the Satisfaction recorded and my Atty threatened them with committing fraud and they withdrew the suit. This went on with them for 9yrs and cost us so much in Atty fees and mentally. We finally were done with the whole situation and agreed to. Short sale in 2019. I would like to be included in this class action lawsuit.
Wells Fargo is now taking my house after almost a year of phone calls and lying. In the beginning they offered me a modification, after I agreed I paid for 3 months, out of nowhere they said I never paid them, then that turned into them telling me, my first payment was reversed, I proved to them that it was not and the funds went straight to them, Wells Fargo then said they transposed 2 numbers with my first 3 payments but that was somehow my fault, then the 1 –4 hour long on hold calls began getting me nowhere with no answers. Since then, I have gotten ill went on disability lost my wife of 20 years and my job of 21 years, with now where to go…I am suffering mentally and physically every day, and now with no benefits I can’t see my doctors or my neurologist. I would like to be a part of this law suit. someone please help. I know there are worse off than me, so while I still have internet access I will do whatever I can to help the people who are not able…
wells fargo is now taking my house after months of back and forth. since then i have gotten ill went on disability lost my wife of 30 20 years and my job of 21 years, with now where to go,…I am suffering mentally and physically everyday, and now with no benefits i cant see my doctors or my neurologist..i want to be a part
of this lawsuit. I know that they were not being truthful. .I know they are lying…someone please help./..\\
We had 2 rental properties in Sacramento. Ca. Bought it under adjustable interest rates. Was having problem paying because the house needed a lot of maintenance before being rented out. Called the bank on several occasions, we were told to send all the documents to modify the loan. We gathered all the information, modification was denied. Later another agent called said he will investigate. A month later received a letter in the mail for foreclosure. Lost both the property through short sale. They could have helped after all the money they made. They did not care.
wells fargo took the house after months of back and forth. i have suffered mentally and physically since that day. i want to be a part
of this lawsuit. I knew that they were not being truthful. i knew they wrong .
Please send me the court order directing wells fargo to correct or remove that negative reporting.