Lending giant Wells Fargo is settling charges that it overcharged borrowers for broker’s price opinions. Borrowers who had a mortgage serviced by Wells Fargo between May 6, 2005, and July 1, 2010, may be eligible to receive portions of a $50 million settlement.
Wells Fargo was accused of charging certain borrowers between $95 to $125 for BPOs. The typical cost is $50 or less. Borrowers who paid the elevated price for the BPO may be eligible to receive some of the money from the settlement.
Wells Fargo officials released a statement saying they believe they did nothing wrong.
“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 issued to HousingWire.
Borrowers who qualify for portions of the settlement money do not need to make a claim. A check will be mailed to class members at their last known address in Wells Fargo records, according to attorneys involved in the case. For borrowers who have since moved, they are urged to submit their new address at the settlement’s website
The settlement still needs to be finalized. A hearing is scheduled for April 4 to approve the terms. Settlement funds will be sent to class members shortly after the terms have been finalized.
Source: “Wells Fargo Customers to Receive $50 Million for Overcharged Mortgage Fees,” HousingWire (Jan. 24, 2017)