Wells Fargo Bank has been hit with a class action lawsuit accusing it of failing to audit its mortgage lending software, leading to errors that allegedly denied potentially hundreds of thousands of customers the opportunity to qualify for home mortgage loan modifications.
Named plaintiffs Myron Curry, of Los Angeles; Darrell Forney, of Prince Georges County, Maryland; and Chester Nelson, of Cook County, Illinois, filed the suit on behalf of themselves and others similarly affected. The lawsuit was filed March 7 in San Francisco federal court.
They claim that between 2010 and 2018, Wells Fargo failed to detect or ignored multiple systematic errors in its automated decision-making software which determined customers’ eligibility for a government-mandated mortgage modification. The lawsuit asserts this alleged failure to audit its software and detect the errors led to potentially thousands of borrowers throughout the country being unable to modify their mortgage loan, allegedly to reduce their loan payments.
The bank is accused of violating the Home Affordable Modification Program (HAMP) and other government statutes over a period of at least eight years.
The plaintiffs are seeking to expand the action to include potentially thousands of other plaintiffs throughout the U.S. and California.
They are asking the court to order Wells Fargo to pay unspecified damages, including treble damages and punitive damages, plus attorney fees.
They are represented in the action by attorney Alisa Rose Adams, of the Dann Law Firm, of Foothill Ranch.