Wells Fargo (WF) is facing potential lawsuits from homeowners who claim the lender refused to offer them permanent mortgage modifications, resulting in the foreclosure of the borrowers’ homes, Reuters reports.

"The 9th Circuit did not rule on the merits of the underlying cases, and found only that the district court should consider the arguments put forth by the plaintiffs," the bank said in a statement. "Wells Fargo has strong defenses to those arguments, and is prepared to present its case."