Court Reverses Dismissal in Wells Fargo Mortgage Case
The U.S. Court of Appeals for the Ninth Circuit reversed a dismissal that originally was granted to Wells Fargo in a case alleging faulty mortgage servicing practices, HousingWire reported Aug. 19.
In early August the Northern District Court of California granted the bank a dismissal in a case brought against it by homeowners Phillip Corvello and Karen and Jeffrey Lucia. Both sets of homeowners applied for loan modifications under the federal Home Affordable Modification Program, and they claim the bank unfairly foreclosed on them.
Wells Fargo spokesman Tom Goyda told HousingWire that the Ninth Circuit Court did not rule on the merits of the case. Rather it ruled that the district court should include the arguments of Corvello and the Lucias. The Ninth Circuit Court argued Corvello could prove he made the necessary payments in his HAMP trial, although Wells Fargo claimed the homeowner did not meet other criteria for a HAMP modification.
The Ninth Circuit Court noted, however, “No purpose was served by the document Wells Fargo prepared except the fraudulent purpose of inducing Corvello to make the payments while the bank retained the option of modifying the loan or stiffing him.”
Goyda told HousingWire, “Wells Fargo has strong defenses to the plaintiff’s arguments and is ready to present our case in district court.”