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Who is a Class Member

You are included in the the Wells Fargo FHA Home Loan Interest class action settlement if you “had an FHA-Insured Loan that was originated beginning June 1, 1996 and ending January 20, 2015, where:

i) Wells Fargo, its agent, or its predecessor was the mortgagee as of the date the total amount due on the FHA-Insured Loan was brought to zero

(ii) Wells Fargo collected Post-Payment Interest on the FHA-insured Loan during the applicable Limitations Period; and

(iii) the borrower made a prepayment inquiry, request for payoff figures, or tender of prepayment but did not receive a Payoff Statement containing the verbatim Post-Payment Interest disclosure language in Housing Handbook, 4330.1 REV-5 Appendix 8(c) or the verbatim language contained in the “Payoff Disclosure” referenced in the Housing Handbook 4000.1.

If you don’t qualify for this settlement, check out our database of other class action settlements you may be eligible for.


Settlement Amount

  • $30,000,000.00

Estimated Award

  • $19.50 (estimated)

Proof of Purchase

  • N/A

Claim Form

  • N/A. Unless you exclude yourself from the settlement, you will automatically receive benefits from the settlement and you will be bound by the settlement’s release.

Wells Fargo FHA Home Loan Interest Settlement Notes

  • Fowler v. Wells Fargo Bank NA
  • Case No. 4:17-cv-02092
  • Pending in the U.S. District Court for the Northern District of California

This class action lawsuit stems from allegations that Wells Fargo unlawfully and unfairly collected post-payment interest on mortgages insured by the Federal Housing Administration (FHA)—part of the Department of Housing and Urban Development (HUD)—by failing to provide proper notice to borrowers.

Under HUD regulations, banks may collect interest after a borrower repays the full principal on his or her FHA-insured loan if the borrower’s repayment is made after the first of the month. Accordingly, banks may collect interest from the date the loan is paid off through the end of the month. However, the statute specifies that before banks may collect this post-payment interest, they must provide notice to borrowers with “a form approved by the FHA Commissioner.”

The Wells Fargo FHA class action lawsuit asserts that Wells Fargo did not provide plaintiffs with the proper notice and instead used its own unauthorized form that “does not fairly disclose the terms under which Wells Fargo can collect post-payment interest or properly explain how borrowers can avoid such charges.” According to the plaintiffs, Wells Fargo’s form suggests that borrowers cannot avoid paying post-payment interest through the end of the month. As a result, plaintiffs say were charged interest twice—both by Wells Fargo and by their new lenders after refinancing.

Wells Fargo denies that it violated the law and specifically denies that it was required to provide a certain type of disclosure to borrowers prior to the collection of interest. However, the company agreed to settle to the tune of $30 million. Complete details about the case and settlement are provided on the Wells Fargo FHA Home Loan Interest settlement website.

Class members who wish to object to or exclude themselves from the settlement must do so by November 20, 2018. Class members who wish to receive payment from the settlement do not need to do anything.


Important Dates

  • N/A: Claim Form Deadline
  • 11/20/18: Objection or Exclusion Deadline
  • 12/20/18: Final Hearing at 2:00 pm PT* (class members do not need to attend this hearing in order to receive a slice of the settlement pie).

*Settlement Class Members who wish to speak at the hearing should check www.FHASettlement.com to confirm that the date or time of the Hearing has not been changed.


Contact Information

  • Mail: Fowler, et al v. Wells Fargo Bank NA, c/o GCG, PO Box 10644, Dublin, OH 43017-9244

Class Counsel


Settlement Website

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