“Wells Fargo brought a whole bunch of people into the HAMP system, knowing that they would not be able to complete the process,” said Tim Blood, a managing partner with San Diego-based Blood Hurst & O’Reardon, a law firm representing the class of plaintiffs in the legal action. A US judge has ruled that Wells Fargo must face a class action lawsuit brought by homeowners in California who claim the bank failed to modify mortgages that the residents sought to change amid the foreclosure crisis unleashed by the recession. The decision is expected to be appealed and could set up another legal showdown between banks and homeowners, as well as regulators over how they handle mortgage modifications.
A US judge has ruled that Wells Fargo must face a class action lawsuit brought by homeowners in California who claim the bank failed to modify mortgages that the residents sought to change amid the foreclosure crisis unleashed by the recession. The decision is expected to be appealed and could set up another legal showdown between banks and homeowners, as well as regulators over how they handle mortgage modifications.