Servicing

Attorney tries to reopen pick-a-payment case against Wells Fargo

A 2010 settlement between Wells Fargo (WFC) and borrowers suffering from risky pick-a-payment loans is back in the public eye, the Los Angeles Times reported.

The paper reports that an attorney claims Wells Fargo, which originally agreed to provide $50 million to $600 million in modification relief to borrowers, has only granted about 1,746 of those modifications, or 2.6%, according to the LA Times

The lawyer is apparently trying to reopen the case, but a spokesperson for Wells Fargo is disputing the claims, the paper said.

The original settlement was supposed to provide relief to borrowers who were caught offguard by negative amortization mortgages.

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