Judge Orders Wells Fargo To Face Claims Of Improper Disclosure Of Foreclosure Practices

By Author: michael ryson
Total Articles: 15
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Wells Fargo, one of the top five largest mortgage lenders in the country, just reached a mortgage relief deal along with the other top banks in the foreclosure fraud settlement, Feb. 9.

That same day, U.S. District Judge Susan Illston, in San Francisco, ruled that the directors of Wells Fargo must face investors’ claims of improperly disclosing details of deceptive foreclosure practices and rejected its request to dismiss the allegations, as reported by Bloomberg.

Illston concluded that just the mere fact that Wells Fargo allegedly disclosed its practices deceptively, was certainly grounds for stockholders to authorize a more thorough investigation into the claims.

Wells Fargo responded to the Bloomberg article in an email insisting that the claims are false.

“The plaintiff’s allegations are false, said Wells Fargo spokesman Ancel Martinez in an e-mailed message to Bloomberg. ‘‘Our directors acted appropriately in all respects and we look forward to our day in court.’’

It is uncertain how many homeowners in need of help with foreclosure ...
... will actually benefit from the settlement with the continuous array of deceptive allegations. The Mortgage Forensic Audit can help uncover violations and provide mortgage rescue for countless homeowners.

Lawsuit Filed Alleging Wells Fargo And Chase Charge Excessive Default Fees:

Wells Fargo and JPMorgan Chase are being hit with a class action lawsuit alleging that they have been illegally charging excessive and deceptive mortgage default service fees against homeowners who were late on their mortgage payments, according to National Mortgage Professional Magazine.

Between the two banks, they currently service about 25 percent of all U.S. mortgages.

The suit states that they allegedly cheated hundreds of thousands of borrowers by charging abusive mortgage default fees, as reported in NMP Magazine.

The amount of inflated charges varies from $20 to $135. According to NMP Magazine, the extra charges are often listed under vague categories such as “other” or “miscellaneous” in attempt to conceal what they are for.

“Our investigation has revealed that as a result of these practices, banks often make more money from loans that are in default than loans that are current,” said Mark Pifko, one of the Los Angeles attorneys involved in the case, in an interview with NMP.

The illegal excessive fees just make it increasingly more difficult for those who need help with foreclosure to stand a chance to get mortgage relief and avoid foreclosure.

“Loan agreements require that default-related services must be reasonable and appropriate. Banks are not allowed to mark-up the charges so they can make a profit, but that is exactly what they have done. In many cases, the banks are overcharging by as much as 300 percent,” Pifko said.

If you are behind on your mortgage payments, then The Foreclosure Law Center can help you. For more details about The Foreclosure Law Center Complaints, please visit us online.