Archive for the ‘Wells Fargo’ Category

Wells Fargo – Class Action Lawsuit – Mortgage Modification

Wells Fargo has a class action lawsuit filed against it that claims that the bank illegally refused to grant permanent loan modifications that it had promised  homeowners who successfully completed a trial mortgage modification under the Homeowner Affordable Modification Program (HAMP).

It states Wells Fargo committed breaches of contract and violated California consumer protection laws by misrepresenting the terms of the HAMP trial periods plans (TPP), designed to be a path toward a permanent mortgage modification.

Homeowners were give lower mortgage payments  for 3 months to prove they could make payments.  They stated in a letter received by these homeowners that  if they “make those payments successfully and fulfill all the trial period conditions, we will permanently modify your mortgage loan.”

This did not occur and the lawsuit states that it was a scheme to get homeowners to send in their payments – and that they never intended to make them permanent.  Wells Fargo got millions of dollars from this during the period.

Update 3/16/2012

Its interesting to note the following:

The CEO of Wells Fargo John Stumpf received $17.9 million in compensation in 2011.  Wells Fargo’s net income was $15.87 billion in 2011, up from $12.36 billion in 2010.

More information on Mortgage Modification Lawsuits


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