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Important Updates:
Settlement checks were mailed to eligible Original Class Members on December 7, 2020.
The Court held a Final Fairness Hearing on January 6, 2022 and approved the Settlement for Supplemental Class Members. The Final Approval Order issued by the court on January 9, 2022 can be viewed on the Important Documents page. Payments to Supplemental Class Members are expected to be issued on February 28, 2022.
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What is this lawsuit about?
The lawsuit alleges that between 2010 and 2018, Wells Fargo miscalculated attorneys’ fees that were included for purposes of determining whether a borrower qualified for a trial loan modification under the U.S. Department of Treasury’s Home Affordable Modification Program (HAMP). Specifically, fees that should have been compared for purposes of the relevant calculation were instead added – which resulted in the erroneous refusal to offer a trial loan modification or repayment plan.
Wells Fargo publicly acknowledged the calculation error and sent letters and checks to affected borrowers. Plaintiffs filed this lawsuit to seek what they claim is full compensation for themselves and similarly situated borrowers. A prior settlement provided settlement payments to over 500 of the impacted borrowers, but over 700 borrowers were identified after the earlier settlement payments were approved. This settlement is designed to provide the same level of compensation to the remaining impacted borrowers.
Wells Fargo denies Plaintiffs’ allegations. Wells Fargo denies that it breached a contract or that the erroneous calculations of trial payment plans caused foreclosures or any related damages.
Who is included?
You are a member of the Supplemental Settlement Class if the calculation error caused you to be denied a trial loan modification (even though you qualified for one) and you later lost your home in a foreclosure sale. You likely received a letter from Wells Fargo in 2021 regarding the error.
The Court’s description of the Supplemental 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 due to excessive attorney’s fees being included in the loan modification decisioning process; (iii) whose home Wells Fargo sold in foreclosure; and (iv) were not part of the Hernandez I Settlement.
How do I participate?
If you were an Original Class Member, you did not need to do anything to receive your share of the settlement. Your money was mailed to you on December 2, 2020. If you did not receive a settlement check, please check with the state unclaimed property division of the state in which the borrower was last known to reside.
If you are a Supplemental Class Member. you did not need to do anything to receive your share of the settlement. Your money will be mailed to you automatically if the Court approves the settlement, unless you excluded yourself from the settlement. If your address changes, please let the Settlement Administrator know your new address. If you believe you suffered severe emotional distress, you could have applied for an additional payment from the $1.45 million fund set aside for this purpose. An attorney experienced in handling emotional distress claims has been appointed by the court as a special master to process these claims and determine which Class Members will get additional settlement payments and the amount of those payments.
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