Wells Fargo not modifying mortgages as required, lawsuit says

Wells Fargo not modifying mortgages as required, lawsuit says

Accusing Wells Fargo & Co. of reneging on a sweeping mortgage-modification deal, a lawyer for troubled homeowners is trying to reopen a case involving risky “pick-a-pay” loans written during the housing bubble.

Legal filings last week claimed Wells Fargo failed to provide wide-ranging reductions of loan balances to delinquent borrowers as it had promised two years ago when it settled a combined national class-action suit. A bank spokeswoman strongly disputed the claim, saying it was riddled with errors.

The litigation illustrates how lawsuits continue to dog major home lenders more than five years after the mortgage industry imploded, including recent challenges to certain cases the banks thought had been put to rest.

The original lawsuits over pick-a-pay, or pay-option, mortgages contended that the loans were issued with inadequate notice to borrowers that the amount owed would rise if they chose the lowest payment among four options. The loans were made by banks later acquired by Wells Fargo.

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One Response to “Wells Fargo not modifying mortgages as required, lawsuit says”
  1. TheHutMaster says:

    I work with the LIARS at Wells Fraudo on a daily basis. These criminals are the WORST, second to GMAC.

    My advise is to escalate the denile to the program directors. Most often than not, and if you qulify, it will get done.

    I was a guest on a talk show, this past Sunday, and weigh in on the dirtbags at Wells Fraudo.

    “Fight The Good Fight”

    Every Minute Every Day.

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