Hernandez, et al. v. Wells Fargo Bank, N.A. Home Loan Modification Settlement

Wells Fargo Home Loan Modification Settlement

Claims Process

Navigating the Claims Process

The Wells Fargo Home Loan Modification Settlement was formed to provide payments to borrowers who were improperly denied a home loan modification between 2010 and 2018 due to a calculation error by Wells Fargo Bank, N.A. If you had a loan with Wells Fargo during this period and your application for a home loan was denied because of a miscalculation, you could qualify for compensation through the class action Hernandez, et al. v. Wells Fargo Bank, N.A. This page will detail the process to make a claim, eligibility requirements, payment distribution, and the next steps if more information is needed.

Am I Eligible?

Eligibility for compensation under the settlement was based on strict, objective criteria, established by the court. The settlement provided compensation to two classes:

  • The Original Class – Borrowers who qualified for a home loan modification or repayment plan under government-sponsored programs (HAMP, Fannie Mae, Freddie Mac, or FHA), but were improperly denied because of Wells Fargo’s miscalculation of attorneys’ fees and later lost their homes in foreclosure.
  • The Supplemental Class – Borrowers who were later identified as belonging to the class and met similar criteria, who were also harmed because of Wells Fargo’s improper calculation of attorneys’ fees and later lost their homes in foreclosure.

These class members were identified by Wells Fargo from its own loan records. Notice was provided by mail. If you received a settlement letter and/or a check, you are or may be eligible for compensation and participated in the settlement.

Automatic Payments from Settlement

For simplicity and to ensure that affected borrowers are compensated, the vast majority of settlement payments were distributed automatically. Specific class members did not need to file a claim form or take any further action to claim their settlement payment. Checks were automatically mailed to all affected borrowers’ last known addresses on file. Payment amounts varied based on the specific class member’s circumstances and the terms of the settlement agreement.

If you did not receive a check, but believe that you were entitled to one, make an inquiry with the state unclaimed property division where you last lived. You may also book a discussion with the Settlement Administrator for assistance.

Claims for Compensation for Severe Emotional Distress

Besides the automatic payments, the settlement created a $1.45 million fund for class members who suffered significant emotional distress from having to move after losing their home. That fund is administered by a court-appointed special master-an experienced lawyer with a specialty in emotional distress claims.

To be eligible to receive additional money, class members had to file a claim explaining the nature and extent of their emotional distress, and provide any supporting documentation they had (medical records, therapy notes, declarations, or other statements, etc.). The deadline for filing such claims has expired. The special master evaluates each claim and decides how much additional money, if any, should be awarded for the claim.

If you filed an emotional distress claim, you will be informed about the result and any additional payment you may be receiving. Payments from this fund are being sent separately from automatic settlement payments.

Important Days and Dates

The deadlines for participation in the settlement, for making a claim for severe emotional distress, or for objecting to the settlement or opting out of the settlement have now all passed. The claims process was designed to be simple and straightforward to enable borrowers with legitimate claims for compensation to receive those claims without undue burden. If you failed to comply with any of these deadlines, you may no longer be eligible for compensation (although it is still worthwhile confirming with the Settlement Administrator that you are ineligible, or to learn what options, if any, remain).

How Payments Are Calculated and Distributed

Amounts of settlement payments were determined based on individual circumstances, including, but not limited to, the amount of financial harm suffered, the nature and extent of the foreclosure, and other factors as described in the settlement agreement. In addition, amounts were calculated to make payments fair and proportionate to all class members.

The checks are mailed to the address on record. If your address changed after you received your notice, you need to provide the correct information in a timely way to the Settlement Administrator to avoid delay. When a check is returned as undeliverable, the administrator will exercise reasonable care and effort to locate the claimant, but unclaimed money may end up with the state unclaimed property office.

If You Have Not Yet Received your Payment

If you think you are eligible but did not receive a settlement payment, do the following:

  • Make sure you are eligible by checking the criteria or by calling the Settlement Administrator;
  • Look in your mail and at any previous addresses for mail from the Settlement Administrator;
  • If you have moved, be sure to update the Administrator with your new address as soon as possible; and
  • Look in the unclaimed property division of the state where you last lived, as undelivered checks may be sent there.

Call 1-877-545-0236 or write to [email protected] with questions or concerns. Write to: Hernandez, et al. v. Wells Fargo Bank, N.A., c/o JND Legal Administration, P.O. Box 91350, Seattle, WA 98111.

Your Rights and What You Can Do Next

Class members had the right to accept compensation, object to settlement, or file for exclusion. All deadlines have come and gone. The main thing left is making sure those entitled to payments receive them. If you have questions about your rights, payment status, or how your information will be treated, please address those with the Settlement Administrator.

If you need to update an address or have questions related to payment, do so now to prevent further delays.

Contact Information and Assistance

The settlement is being administered by JND Legal Administration, a class action settlement administrator. If you have questions, need assistance updating your address, or require help understanding if you are eligible, please contact the Settlement Administrator by:

JND’s experienced customer service representatives can walk you through any and all steps you need. Please check this website often for new information and important notifications.

We are Committed to Transparency and Fairness

We created the Wells Fargo Home Loan Modification Settlement with these principles in mind. JND Legal Administration or an outside administrator is committed to administering the Wells Fargo Home Loan Modification Settlement following all court orders and professional standards. We are working hard to process timely, accurate payments, and provide class member support in a thorough, efficient manner.

As always, please do not hesitate in contacting us about any questions or concerns you may have. We remain committed to a positive experience for our class members as we try to remedy this error and award compensation to those affected.