Wells Fargo Hit with Lawsuit Claiming it 'Tricked' Mortgage Holders

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A Florida woman claims in a proposed class action that Wells Fargo Bank, N.A. violated both the Real Estate Settlement Procedures Act (RESPA) and the Fair Debt Collection Practices Act (FDCPA) when it failed to honor certain obligations under both statutes and tricked consumers into believed they had received “significant” loan modifications when they had not. The plaintiff claims specifically that she and proposed class members were given several small “trial modification” payments, but were later surprised by heftier “balloon payments” the individuals could not afford.

After the plaintiff’s mortgage for her Weekie Wachee, Florida residence went into default, Wells Fargo purchased and began servicing the loan. In April 2016, the plaintiff retained legal counsel and sent Wells Fargo a qualified written request for a loan modification. According to the case, Wells Fargo refused to respond to this request, an apparent RESPA violation since it was the servicer to the loan.

“[Wells Fargo] has failed to or refused to comply with various sections of [RESPA], in that [Wells Fargo] did not inform [the plaintiff] whether or not [her] Loss Mitigation Application was complete within five days of receipt or provide written notice within 30 days of receipt of a complete loss mitigation application stating which loss mitigation options, if any, [Wells Fargo] will offer [the plaintiff],” the complaint reads.