Wells Fargo, Patriot Land Transfer Home Mortgage Loan Settlement

Wells Fargo and Patriot Land Transfer have agreed to resolve claims that home mortgage loan borrowers were injured by a kickback scheme.

The Wells Fargo home mortgage loan settlement benefits borrowers of a federally related mortgage loan originated by Wells Fargo, secured by real property in New Jersey, and for which Patriot Land Transfer provided a settlement service between Jan. 1, 2013 and April 13, 2015.

Plaintiffs in the home mortgage loan class action lawsuit argued that Wells Fargo and Patriot Land Transfer entered into an illegal antitrust agreement. As a result, Wells Fargo employees allegedly received kickbacks from Patriot when they referred home mortgage loan borrowers to the company for services.

“Wells Fargo received and accepted kickbacks in two forms: (1) direct cash payments and (2) free marketing materials, including: the culling and selecting of the highest value leads to send mail that would most closely match the mortgage products and programs Wells Fargo was featuring, borrower sales leads, payment for printing, inserting and folding of mail pieces and/or postage,” the Wells Fargo home mortgage loan class action lawsuit argued.

These kickbacks were allegedly concealed from borrowers, resulting in the perception that the services were worth more than they actually were. Plaintiffs claim that they paid extra for the services – money which went directly to funding Wells Fargo kickback benefits.

“Plaintiffs and Class Members paid more for their settlement services because Wells Fargo and its employees and/or agents performed no services in exchange for the kickbacks paid and kickbacks were paid instead of lowering the cost of title and settlement services to the consumer,” the plaintiffs argue in their home mortgage loan class action lawsuit.

Wells Fargo and Patriot Land Transfer have agreed to the home mortgage loan settlement to resolve the claims against them, although the companies do not admit to any wrongdoing.

Under the settlement, Class Members will receive cash payments equal to 180 percent of the unfair fees they paid. In order to see how much Class Members will receive, they can consult their final HUD-1 Settlement Statement. Line 1101 of this statement minus Line 1108 multiplied by 1.8 will give Class Members their settlement benefit.

No claim form is required to benefit from the settlement. Instead, payments will automatically be distributed to Class Members.

Affected home mortgage loan borrowers have the opportunity to object to the settlement or opt out by June 29, 2020.

Objecting to the settlement will inform Class counsel that you have a problem with some or all of the settlement terms.

Opting out of the settlement will mean that you will not receive benefits from the deal but will retain your right to pursue legal action against Wells Fargo or Patriot Land Transfer for this same issue.

The final approval hearing for the home mortgage loan class action settlement is Sept. 17, 2020. At this hearing, the court will hear objections and decide whether the settlement can move forward.

Who’s Eligible

Borrowers of a federally related mortgage loan originated by Wells Fargo, secured by real property in New Jersey, and for which Patriot Land Transfer provided a settlement service between Jan. 1, 2013 and April 13, 2015.

Potential Award

180% of fees paid.

In order to see how much Class Members will receive, they can consult their final HUD-1 Settlement Statement. Line 1101 of this statement minus Line 1108 multiplied by 1.8 will give Class Members their settlement benefit.

Proof of Purchase

N/A

Claim Form

No claim form is required for this settlement. For more information, click here.

Claim Form Deadline

6/29/2020

Case Name

Conover, et al. v. Patriot Land Transfer LLC, et al. No. 1:17-04625-RMB-JS, in the U.S. District Court for the District of New Jersey

Final Hearing

9/17/2020

Settlement Website

PatriotClassActionSettlement.com

Claims Administrator

Conover v Patriot Land Transfer
c/o Rust Consulting Inc – 6794
PO Box 44
Minneapolis, MN 55440-0044
1-866-208-5048

Class Counsel

Michael Paul Smith
Melissa English
SMITH GILDEA & SCHMIDT LLC

Bruce D. Greenberg
LITE DEPALMA GREENBERG LLC

Timothy J. Maloney
JOSEPH GREENWALD & LAAKE PA

Defense Counsel

For Patriot Land Transfer:
Jerry R. DeSiderato
Benjamin W. Spang
DILWORTH PAXSON

For Wells Fargo:
Jeffrey Patterson
David Fialkow
Jennifer J. Nagle
K&L GATES LLP

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