About the Settlement
Learn about the long-standing class action lawsuit brought against Wells Fargo and how the approved settlement will impact class members.
A class action lawsuit, Hernandez, et al. v. Wells Fargo Bank, N.A., alleges that miscalculations of attorneys’ fees under California’s fair debt collection laws led to errors that caused miscalculations of eligible borrowers’ home loan modification payments under HAMP (Home Affordable Modification Program). The miscalculations caused wrongful denials of borrower home loan modifications from 2010 to 2018.
The settlement aims to compensate affected borrowers and address their emotional distress claims through funds that will be handled by a court appointed expert who will recommend WFA’s best estimate of the time lost applying for HAMP loan modifications and loan modification denial as compensation.
- If you are one of the millions of affected borrowers, you do not need to do anything except check homeloanmodificationsettlement.ca.gov regularly for updated information.
- Your participation in the settlement is automatic as long as you are part of the classes and you did not timely opt out before the deadline.
- The court has appointed a settlement administrator, JND Legal Administration LLC, which will handle notice to the class members.
- All notifications to Class Members regarding the actions and status of this settlement will come directly from the Settlement Administrator.
Eligibility and Compensation
You are eligible: Individuals and entities who submitted applications for a home loan modification to Wells Fargo between 2010 and 2018 and were denied because attorneys’ fees were added to the money owed on the loan, and it turned out that those fees were miscalculated. You get paid: You will automatically receive payments if you were in the Original Class or Supplemental Class and fall within the criteria above. For eligible members of the Original Class or Supplemental Class, Wells Fargo will deposit or send payments directly to you – you do not need to do anything to claim these funds.
Who is eligible for compensation?
All class members whose account has been identified by Wells Fargo as being erroneously denied a home loan modification due to miscalculation of attorneys’ fees on their account are automatically eligible for compensation. No action is required by class members in order to receive a settlement payment.
Is the payment process automatic?
We anticipate that all class members eligible to receive compensation in the Hernandez, et al. v. Wells Fargo Bank, N.A., case, will participate automatically and will receive payment in the mail. Otherwise, those individuals who do not qualify will not receive anything.
What are the eligibility requirements?
Plus, qualify for compensation if you meet these criteria: • If you qualified for a home loan modification under the Home Affordable Modification Program (“HAMP”) between 2010 and 2018; and • You were improperly denied a loan modification or received a smaller final modification payment amount because of a Wells Fargo error in the calculation or accounting of attorneys’ fees.
Can I claim additional compensation for severe emotional distress?
Tack on additional compensation: Individuals who feel they have insurance to file additional compensation for severe emotional distress should be aware that there is a $1.45 million fund in place for this purpose. A court-appointed special master will oversee this application process.
Claim Additional Compensation for Emotional Distress
Claim Your Additional Compensation for Emotional Distress
- Wells Fargo committed a large number of loan modification errors which caused their borrowers severe emotional distress. Many of these borrowers had no choice but to accept a loan modification offer, but such acceptance did not necessarily mean that they were assured of past loan payoff, lack of foreclosure, and stable interest rates.
- If you believe you’ve suffered significant emotional distress, an application may also be submitted for an additional Payment, available under a claim form submitted to the Court through Mr. Evans. In addition to being overseen by a special master named Kenneth R. Evans, III, his role is to review claims pertaining to Severe or Extreme Emotional Distress. This claims process is in addition to the payments a borrower might already receive.
- Mr. Evans is the Court-appointed Special Master who will oversee the claims process for emotional distress set forth in the settlement. You can visit his website at www.kennethrevans.com.
- The Special Master became involved because the class representatives insisted that the settlement allow a forum for borrowers to forward allegations of severe or extreme emotional distress relating to the subject loans.
- If the borrower provided a phone number, they would have likely been contacted by a Special Master, or staff members working with the Special Master, over a period of several months. The borrower would have received oral instructions about how they could likewise provide written evidence of any mental distress if they so chose.
- All aspects of the claims process are supposed to be maintained in accordance with the best professional standards and made available for public access through digital files prepared for non-classified or non-confidential or privileged information.
Important Deadlines and Updates
Stay Updated: Important Deadlines and Settlement News
Get important payments and deadlines sent straight to your email inbox when you subscribe to email alerts on homeloanmodificationsettlement.com. Simply go to the homepage of the settlement website, enter your email address and hit submit to join. You will then receive important announcements and payment updates months before you can expect your next Settlement payment.
If you are an eligible class member, you should have already received your confirmation email confirming that you are eligible to receive a Settlement payment. Class members are being urged to check their spam and junk folders on a regular basis to make sure that they do not miss their confirmation email because it is sent from a non-identified source. You will be notified if you are no longer eligible for a payment.
Payments for Eligible Settlement Class Members were mailed out on or before December 1, 2014. As of December 31, 2016, there have been four Affiliated Transaction Payments totaling over $3.7 million and over 9,500 self-identified beneficiaries have received recoveries from Affiliated Transaction Payments totaling over $1.8 million in settlement amounts. The fifteen Qualified Settlement Fund companies have funded their contributions directly to the claims processor. Going forward, eligible class members will receive Affiliated Transaction Payments as long as the companies continue to meet the qualifications set forth in the agreement which can be viewed on the Hernandez blog page.
All remaining funds will be distributed to eligible residents who owned a residential property with Wells Fargo Home Mortgage Company in the past five years and who have self-identified with the claims processor and provided the requested household and Wells Fargo residential mortgage information. If you change your email address or physical address you need to let the Settlement Administrator know. It was reported that an estimated 350 emails have bounced back since the original distribution of notices.
Contact Us
Contact us with any questions
We’re here every day
📞 Phone Support
Prefer to connect about a settlement benefit over the phone? Just call 1-877-545-0236 from 5:00 a.m. 8:00 p.m. Pacific Time to speak to a friendly JND Legal Administration team member anytime every day, except on Thanksgiving, Christmas and New Years Day.
✉️ Email Support
Class members can also reach us at [email protected] and by mail at: Hernandez, et al. v. Wells Fargo Bank, N.A., c/o JND Legal Administration, P.O. Box 91350, Seattle, WA 98111.
🕑 Hours & Availability
We’re here for you if you need to find out if you’re eligible for any settlement benefits or if you have any other questions about the settlement. Our team is here for you, providing timely service and important information regarding the settlement, seven days a week.
🌐 Website & Updates
It’s also important for class members to monitor the Home Loan Modification Settlement website regularly and contact us to ensure they are completing all necessary steps to receive these benefits. Visit the Contact Us page for more information.
FAQs: Wells Fargo Home Loan Modification Settlement
Find answers to frequently asked questions about the settlement and the claims process.
What is the Settlement?
A proposed settlement has been reached in a class action lawsuit Fitzgerald, et al. v. Wells Fargo Bank, N.A., led by the named plaintiff Nicholas Fitzgerald on behalf of current and former employees (as Rule 23 plaintiffs) of Wells Fargo Regional Banking Group, Wells Fargo & Company, or their affiliates (collectively, “Wells Fargo”) whose primary position with Well Fargo or its affiliates is one of the occupations designated on the Occupations Classification List and who applied for a home loan modification with Wells Fargo at any time from January 1, 2006 to December 31, 2012. The lawsuit claims that Wells Fargo put its own financial interests ahead of customers’ interests and developed a loan-modification program that lowered the interest rate on some loans but did not adjust the principal amount.
Am I eligible to participate in the Settlement?
You are included in the class if you are or were a customer of Wells Fargo who applied for and was denied for consideration in the Wells Fargo Home Payment Program (“HPP”), or could not utilize another well-established program for home loan modifications, and received a Wrongful Denial letter sent by Wells Fargo (or its agent, Merriman River Holdings, LLC) between January 1, 2006 and December 21, 2010. If you purchased your home after January 1, 2006, you are not part of the Settlement.
How will I receive compensation?
The proposed settlement creates a Net Settlement Fund of $39.75 million in addition to costs of implementation, and if the Court approves the Settlement, each Class Member who is a “settlement class member” will receive up to 2,800 for each qualifying property, including an additional $500 for each mortgage at a qualifying property; but the total distributed amount will not be more than $140 million.
How can I receive money from the Settlement if I opt out of the Class?
Settlement Class Members who do not timely request exclusion from the Settlement Class and who do not obtain otherwise-canceling or duplicating awards from the Settlement Class may make Claims to resolve applicable consumer protection, tort and/or contractual causes of action by completing and signing under penalty of perjury the Home Loan Modification Claims Form. A Home Loan Modification Claims Form must include all information called for in the form to be valid.
When will I receive my settlement check?
The Court has not reached a final determination as to whether the Settlement should be approved. Under the Stipulation, the Settlement will not become effective unless and until certain conditions are satisfied, including that the Court enters the Final Approval Order and Judgment. If the Settlement becomes effective then, according to the Stipulation, you will receive a settlement check no later than 30 days after the Effective Date.
I have not received my settlement check. What should I do?
The Settlement Administrator mailed your settlement check within 30 days after the Effective Date. If you have not received your settlement check, please verify that you have not removed your name from the mailing list or did not otherwise request that the settlement checks be sent to your estate pursuant to Preliminary Approval Order 4(d).