Major National Bank to Pay $40.3M to Settle Class Action Lawsuit for Denying Mortgage Payment Changes | PC Weiner Brodsky Kider
A $40.3 million class action settlement was recently approved between a major national bank and a group of plaintiffs who claimed the bank wrongly denied them loan modifications, resulting in the seizure of their houses.
Borrowers claim that from 2010 to 2018, the bank erred in its calculations for some borrowers, which resulted in them being denied a loan modification when they were in fact eligible under the loan modification plan. affordable home modification. Under HAMP, participating mortgage officers were incentivized to modify eligible mortgages to avoid foreclosure.
The bank had already detected this error twice in its calculation software, and in 2018 it implemented a complete fix, made the error public and contacted certain owners to offer an apology and between 5,000 and 15,000 dollars. of compensation.
Under the approved settlement, each borrower is entitled to between $14,000 and $116,502 in economic damages payments, depending on their outstanding principal balance, the length of their late payment and any payments they already had. received from the bank for repair.
The case is Hernandez et al. vs. Wells Fargo Bank NA et al., Case Number 3:18-cv-07354, in the U.S. District Court for the Northern District of California.