Class Action Lawsuit Brought Against Wells Fargo Over HAMP

Posted by Patrick Barnard on August 12, 2013 3 Comments
Categories : Required Reading

A class action lawsuit filed in the Ninth Circuit Court of Appeals alleges that Wells Fargo improperly denied customers the opportunity to obtain permanent mortgage modifications through the Home Affordable Modification Program (HAMP).

The lawsuit, filed by Blood Hurst & O'Reardon LLP on behalf of Phillip Corvello and other Wells Fargo customers, alleges that although many thousands of homeowners nationwide complied with all requirements of their agreements with Wells Fargo, the bank nevertheless refused to modify home loans as it was required to do under the HAMP program.

In a decision rendered last week, the court found that permitting the lawsuit ‘avoids the injustice that would result were Wells Fargo's position accepted.’

A statement issued by the law firm explains that the U.S. Department of the Treasury launched HAMP in 2009 to help millions of distressed homeowners avoid foreclosure.

In addition to the $25 billion in TARP money that the Treasury Department provided to Wells Fargo in 2008, it also gave the bank economic incentives to provide reasonable mortgage modification options to homeowners.

‘In so doing, Wells Fargo accepted months of modified mortgage payments and led its customers to believe that they would be offered permanent mortgage modifications under HAMP,’ the law firm said.

Timothy Blood, counsel for plaintiff Phillip Corvello in the class action lawsuit and managing partner of Blood Hurst & O'Reardon LLP said the court's decision to allow the suit to proceed is ‘an important victory for tens of thousands of families and a reminder to big banks like Wells Fargo that even they must uphold their promises.’Â

‘Wells Fargo willingly took bailout money from U.S. taxpayers and then failed to live up to its end of the bargain by denying deserving families reasonable loan modifications it was contractually obligated to provide,’ Blood said. ‘Today, the appellate court took a large step forward to right this wrong.’

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Comments

  1. I responded to a Wells Fargo promoted offer for an “Evergreen” Line of Credit. It was billed and described to me as a never ending credit line (as long as the security and my credit capacity did not become disrupted).

    The documentation included the normal guarantees, and banking notes within the “Confirmation” there was an unremarkable reference to a separate “Disclosure” that was relevant to the loan terms and conditions.

    The “Disclosure” indicated that the loan terms could be changed at any time at the Banks determination.

    Although this “Disclosure” provision was critical to the loan, in that it in fact invalidated all of the provisions promoted, and expected in return for the cost and effort to qualify for the loan, this documentation was not integrated into the documentation (no signatures of receipt or knowledge).

    I was not provided the documentation, and the bank has no proof of providing that documentation.

    How could a bank promote and solicit that I pay the cost of application (and change my financial planning due having “Evergreen” forever credit, with a known provision that the loan could be changed or ended at any time?

    A Class Action suit should be forwarded to protect those like myself who were misled, and damaged.

  2. I had a home mortgage loan with Wells Fargo from 2004 to 2012 In 2012, I had financial difficulties and asked for a loan modification which I never received and as a result I lost my home to foreclosure in 2014. There are several of these class action suits I am sure are relative to my situation but I do not know how to approach this situation.

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