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Important Update:
The Court held the Fairness Hearing on Tuesday, January 25, 2022 and issued an Order approving the Settlement. The Order can be viewed on the Important Documents page here.
Checks were mailed to eligible class members on March 15, 2022. If your address has changed, please contact the Settlement Administrator in writing to update your address.
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What Is This Lawsuit About?
The settlement resolves a lawsuit over whether Wells Fargo violated the law by wrongfully refusing or failing to offer trial loan modifications because of this calculation error. Wells Fargo publicly acknowledged the discovery of the calculation error and has sent letters and checks to affected borrowers. Although Wells Fargo acknowledges the error, it denies that it has any further liability or that the erroneous calculations of trial payment plans caused any related damages.
Wells Fargo Bank, N.A. (“Wells Fargo”) has agreed to pay $12 million to settle a class action lawsuit on behalf of borrowers who should have been offered a trial loan modification but were not due to a calculation error. The settlement applies only to those borrowers whose homes were not foreclosed upon by Wells Fargo.
Class counsel will seek up to $2,719,093 in attorneys’ fees, reimbursement of up to $65,000 in litigation expenses, and payments of up to $17,000 to the Class Representatives. Wells Fargo has agreed to pay these amounts separate from and in addition to the $9,098,907 that will be distributed to class members.
Who Is Included?
You are a member of the Class if the calculation error caused Wells Fargo not to offer you a trial loan modification (even though you qualified for one) but Wells Fargo did not foreclose upon your home. You likely received a letter from Wells Fargo in 2019 or 2021 regarding the error, and the Parties believe based on Wells Fargo’s records that you are likely a class member.
The Court’s description of the Class is as follows:
All persons in the United States who between 2010 and 2018 (i) qualified for a home loan modification or repayment plan pursuant to the requirements of government-sponsored enterprises (such as Fannie Mae and Freddie Mac), the Federal Housing Administration (FHA), the U.S. Department of Treasury’s Home Affordable Modification Program (HAMP); (ii) were not offered a home loan modification or repayment plan by Wells Fargo because of excessive attorneys’ fees being included in the loan modification decisioning process; and (iii) whose home Wells Fargo did not sell in foreclosure.
How Do I Participate?
You do not need to do anything. Your settlement payment will be mailed to you automatically after any appeals are resolved, unless you excluded yourself from the settlement. If your address changes, please let the Settlement Administrator know your new address.
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