Borrowers who had a mortgage serviced by Wells Fargo between May 6, 2005 and July 1, 2010 could soon receive their share of a $50 million settlement, which stemmed from charges that Wells Fargo overcharged borrowers for Broker’s Price Opinions during the time period in question.
The settlement, which was initially announced in October, stems from a class action lawsuit against Wells Fargo.
The plaintiffs argued that Wells Fargo violated the law by charging borrowers more than the amount Wells Fargo paid for Broker’s Price Opinions. The lawsuit stated that Wells Fargo charged certain borrowers between $95 and $125 for the BPOs, instead of the typical cost of $50 or less.
Wells Fargo said in October, and again in a statement to HousingWire on Tuesday, that it believes did nothing wrong, but chose to settle the suit nonetheless.
“We believe our practices related to Broker Price Opinions were proper and disagree with the claims in the lawsuit, but we agreed to settle the matter to avoid further litigation,” a Wells Fargo spokesperson said in a statement to HousingWire.
Now, the settlement is moving forward.
According to information provided by the plaintiff’s attorneys, the settlement applies to any borrower who had a mortgage serviced by Wells Fargo during the time period referenced and paid the elevated price for the BPO.
The attorneys stated that borrowers who qualify do not need to make a claim for their share of the settlement funds. A check will be mailed to class members at their last known address in Wells Fargo’s records, the attorney’s state.
If borrowers have moved, they are encouraged to go to the settlement’s website, found here, to submit their new address.
The settlement is not yet finalized, the lawyers caution.
A hearing is scheduled for April 4, 2017 to approve the terms of the settlement.
If approved, the settlement funds will be sent out to the class members at an undetermined date.