Mortgage or Loan Modifications
In 2018, Wells Fargo revealed that “a calculation error” in the software it used to for the modification of mortgage loans. That error resulted in 870 homeowners being denied mortgage modifications they should have gotten. This class action is brought by a couple who were among those wrongly denied a modification.
Wells Fargo has seen a number of scandals, including its employees opening fake accounts for real customers and its force-placing of unnecessary auto insurance on car loan borrowers. Now, the complaint for this class action alleges that the bank wrongfully refused certain customers home loan modifications under the Home Affordable Modification Program (HAMP).
This settlement resolves a class action against Mariner Finance, LLC. The complaint alleged that Mariner charged customers refinancing charges but did not include those with the simply interest rate in the promissory notes, possibly because the interest rates might then higher than allowed by Maryland laws.
If a mortgage loan modification results in all or part of the loan requiring a balloon payment, California law requires that the modifying bank properly inform the mortgage holders. But the complaint for this class action claims that Wells Fargo provided no such notice to plaintiffs Joseph and Lisa Wyman that they would owe a balloon payment of $30,000 at the end of the term of their mortgage. The sole count alleged by the complaint is the violation of the California Civil Code § 2966 requiring notification of the balloon payment.