Tag Archives: Wells Fargo

Wells Fargo Accused of Discrimination Against Minority Foreclosures

Tuesday, The National Fair Housing Alliance, a group of nonprofit housing advocates, filed a discrimination complaint against Wells Fargo.

The complaint is against San Francisco-based Wells Fargo and Co. and Wells Fargo Bank with the U.S. Department of Housing and Urban Development, according to The Washington Post.

The claims allege the bank is neglecting foreclosed properties in Latino areas and paying better attention to foreclosed homes in white neighborhoods, as reported by Fox News.

The Federal Fair Housing Act requires all banks, investors, servicers and other parties to market and maintain homes without regard to race or ethnicity.

In lieu of the recent $25 billion settlement, Wells Fargo is now, not only accused of unlawfully placing homeowners from Mortgage Default into Foreclosure, and other unlawful foreclosure help practices, but also discriminating against specific groups of homeowners.

The group began investigations in 2010 on more than 200 properties in: Philadelphia, Washington, Atlanta, Baltimore, Dallas, Dayton; Ohio, Miami and Fort Lauderdale and Oakland; Calif.

“Bank-owned homes in white communities were treated in a “far superior manner,” the complaint alleges , The Washington Post. Those homes were 33 percent more likely to be marketed with a professional “For Sale” sign than homes in black or Hispanic communities.”

Homeowners who need help with foreclosure and to restructure their mortgages are not out of luck. The Mortgage Forensic Audit can uncover Mortgage Fraud and be used as legal leverage to retrieve the modification you need to save your home.

Call The Foreclosure Law Center today, for a FREE consultation. 1-888-600-5505

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Judge orders Wells Fargo to face claims of improper disclosure of foreclosure practices

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.

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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.

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Banks reach $25 billion foreclosure fraud settlement with 49 states—Is it enough?

After over a year of back-and-forth negotiations, the five major banks–JPMorgan Chase, Citigroup, Bank of America, Wells Fargo, and Ally Financial—have finally reached a settlement on deceptive foreclosure practices of $25 billion with 49 states, according to Mark DeCambre, the New York Post.

Can you really put a price on the foreclosure fraud mess?

Homeowners in need of help with foreclosure have suffered substantially. Mixed opinions are going around on whether this deal will efficiently help them recover from the deceptive practices many of them have endured.

The deal had a previous deadline of Friday Feb. 3 before it was postponed to Mon. Feb 6, although, Tuesday night was when they ended up officially settling the deal.

New York Attorney General Eric Schneiderman “finally found an accord he couldn’t refuse” and decided to join the settlement along with California’s Attorney General, Kamala Harris–two of the most avid holdouts–reported DeCambre.

Just this past Friday Schneiderman filed a lawsuit against BofA, JPMorgan Chase and Wells Fargo on accusations of fraud using the MERS system, an electronic-mortgage data base system created in the mid-1990s.

The U.S. is calling this deal “the largest federal-state civil settlement in our nation’s history,” with the banks committing to $20 billion in various forms of mortgage relief and an additional $5 billion to state and federal governments, according to a Bloomberg report.

The $25 billion has been broken down differently for each state. Now, time is the remaining factor in seeing if these efforts will help save the homes of the millions of homeowners affected.

Only 20 percent of homeowners successfully restructure mortgages through their banks, as shown in a study done by ProPublica. Whether or not the mortgage relief plans from this settlement help homeowners, a foreclosure lawyer and Mortgage Forensic Audit can create the kind of legal leverage needed to secure lower monthly payments and save homes.

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Berkeley considers closing Wells Fargo account over deceptive foreclosure practices

Last week, Berkeley City Council voted unanimously on closing its $350 million Wells Fargo account and entrusting the money to a community bank or credit union, according to the Oakland Tribune.

The 8-year-old contract is up for renewal this year and brought up talks of whether or not to keep their money there.

Allegedly, the members of the Berkeley City Council are saying that Wells Fargo is “partly to blame for the financial crisis over the last four years,” as reported in the Tribune.

Wells Fargo, being one of the largest servicers in the country, is currently involved with the foreclosure fraud settlement in discussion with the states. Millions of customers in need of help with foreclosure have been hurt by the deceptive foreclosure practices carried out by major lenders over the past few years.

The Berkeley City Council stated that it would like to “reward ‘responsible financial institutions’ with its business,” reported the Tribune.

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New York Attorney General Sues three major banks

Top mortgage lenders face serious fraud allegations.

Last Friday New York Attorney General Eric T. Schneiderman began a lawsuit against Bank of America, Wells Fargo and JPMorgan Chase on accusations of fraud involving an electronic mortgage database, as reported in the New York Times.

The database allegedly resulted in deceptive foreclosure practices including the use of false documents and other illegal practices.

The mortgage database, called Mortgage Electronic Registration System (MERS), was originally created to track and organize mortgage ownership by top lenders in the country.

“The mortgage industry created MERS to allow financial institutions to evade county recording fees, avoid the need to publicly record mortgage transfers and facilitate the rapid sale and securitization of mortgages en masse,” said Schneiderman in an interview with the New York Times.

The Times reported that about 70 million mortgage loans have been registered in the MERS system since the mid-1990s when it was created.

It seems every day there is a new case discovered where people who need help with foreclosure are taken advantage of in the process of restructuring their mortgage.

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Foreclosure fraud settlement deadline set for Feb 3.—What will the end result be?

After months and months of negotiating and reviewing settlement details, the deadline is three days away.

The banks involved are BofA, Wells Fargo, JPMorgan Chase, Citigroup and Ally Financial.

There have been many talks of the settlement ending up somewhere near $25 billion but now what it comes down to is which states decide to join.

“The final value of any settlement will depend on which states it includes, and could drop sharply if states like California, one of the hardest hit by the foreclosure crisis, do not join,” as reported by Reuters.

Last week in Obama’s State of the Union address, he announced the possibility of a new formed group of investigators that would be solely in charge of handling deceptive foreclosure practices. Since then, the settlement began to pick up steam but people are still unsure of what the right action is.

Whether or not the settlement does go through, there are still other options to find help with foreclosure. People countrywide have taken advantage of the Mortgage Forensic Audit and in result received the loan modification they were unable to obtain and their homes were saved.

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Banks are close to reaching foreclosure fraud settlement

Deceptive foreclosure practices are not new problems.

They’ve been going on for decades but have just recently been uncovered over the past few years. People in need of help with foreclosure have, many times, been unfairly placed deeper into their problems rather than helped out of them out.

About two years ago, major banks temporarily suspended foreclosures following the uncovering of several deceptive practices.

“That has backlogged millions of foreclosures that must be cleared before the housing market can fully recover,” reported Derek Kravitz, Associated Press, in the San Francisco Chronicle.

The settlement between the nations major banks (BofA, JPMorgan Chase, Wells Fargo, Citibank and GMAC), and the states, should be somewhere near $25 billion.

After more than a year of back and forth negotiations, officials are finalizing the agreement, stating the sum and conditions of the settlement, and are expected to complete the terms for release within the next few weeks.

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Foreclosure Workshop Offered to Homeowners in CA

A free two-day workshop will be offered to more than 11,000 homeowners in Stockton, CA who are in need of help with foreclosure, Jan. 18.

“This workshop gives Wells Fargo and Wachovia home mortgage customers, who are faced with payment challenges, the opportunity to meet face-to-face with our home preservation specialists to explore and discuss the options available for them,” said David Galasso, Wells Fargo’s Northern and Central California regional president, in an interview with the Central Valley Business Times.

Approximately 75 Wells Fargo reps will be available to assist customers with their mortgage problems.

In the next two months, the workshop will also make its way to San Diego, Sacramento, and Fresno.

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