Ninth Circuit Court of Appeals Unanimously Permits Class Action Lawsuits Challenging Wells Fargo's Home Mortgage Modification Practices

SAN DIEGO, Aug. 8, 2013 /PRNewswire/ -- Today, the Ninth Circuit Court of Appeals issued a unanimous opinion permitting two class action lawsuits to go forward to address Wells Fargo's refusal to modify home loans as they were required to do under the Home Affordable Modification Program ("HAMP").  The lawsuits address conduct affecting tens of thousands of families across the country. The Ninth Circuit found that permitting the lawsuit "avoids the injustice that would result were Wells Fargo's position accepted."

In the midst of the worst foreclosure crisis in history, the U.S. Department of the Treasury launched HAMP in 2009 to help millions of distressed homeowners avoid foreclosure.  Beyond "TARP" money, like the $25 billion provided to Wells Fargo in 2008, the Treasury Department provided economic incentives to Wells Fargo and other banks to encourage them to provide reasonable mortgage modification options to millions of homeowners.  The class action complaint filed by Blood Hurst & O'Reardon, LLP on behalf of Phillip Corvello and other Wells Fargo customers alleges that although many thousands of homeowners nationwide complied with all requirements of their agreements with Wells Fargo, Wells Fargo improperly denied them offers for permanent mortgage modifications.  In so doing, Wells Fargo accepted months of modified mortgage payments and led its customers to believe that they would be offered permanent mortgage modifications under HAMP.  According to the Ninth Circuit, Wells Fargo's offer "promises a substantial benefit" and "Wells Fargo drafted this document, and Wells Fargo must be held responsible for it." 

Timothy Blood, counsel for plaintiff Phillip Corvello in the class action lawsuit and managing partner of Blood Hurst & O'Reardon, LLP said that today's Ninth Circuit opinion serves as an important victory for tens of thousands of families and a reminder to big banks like Wells Fargo that even they must uphold their promises. 

"Wells Fargo willingly took bailout money from US taxpayers, and then failed to live up to its end of the bargain by denying deserving families reasonable loan modifications it was contractually obligated to provide.  Today, the appellate court took a large step forward to right this wrong," said Mr. Blood.

The Wells Fargo class action lawsuit is entitled Corvello v. Wells Fargo Bank (N.D. Cal.).  For more information, visit: http://www.bholaw.com.

About Blood Hurst & O'Reardon, LLP

Blood Hurst & O'Reardon, LLP specializes in consumer protection law.  It represents consumers, insurance policy holders, investors and small businesses in class action lawsuits nationwide.

SOURCE Blood Hurst & O'Reardon, LLP

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

440k+
Newsrooms &
Influencers

9k+
Digital Media
Outlets

270k+
Journalists
Opted In

GET STARTED