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.
Click here to read more.