Skip to main content

Wells Fargo Servicing Division Sued Over Deceptive Loan Mod Practices

Nov 24, 2010

The law firm of Harwood Feffer LLP has announced that it has filed a class action lawsuit against Wells Fargo Bank NA and its loan servicing division, America's Servicing Company (ASC), for fraudulent and deceptive practices related to loan modifications. The suit, filed in the United States District Court for the Northern District of California, Forster, et al. v. Wells Fargo, et al., Index. No., alleges that ASC improperly and unlawfully induced borrowers to default on their mortgages by informing borrowers that loan modifications would not be considered for those individuals who were current on their payments. By making loan default a pre-requisite for modification, without regard to whether a borrower otherwise qualified for a modification due to financial hardship, or ASC caused borrowers to unnecessarily suffer ruined credit and subjected them to significant fees, penalties and interest. As a loan servicer, ASC generates a significant portion of its revenue from fees, penalties and interest collected on the non-performing loans it services. Harwood Feffer's clients believe that it is in ASC's financial interest to avoid, delay and deny loan modifications and to pursue foreclosures because doing so will lead to increased revenue. For more information, visit
About the author
Nov 24, 2010
Bringing Buyer Agents Back To The Table

Dispelling misinformation about the broker commission lawsuits

CFPB Scores Major Victory In Townstone Financial Redlining Case

Seventh Circuit rules CFPB has broad authority to discourage discrimination to combat redlining

Jul 15, 2024
The New Frontier

In a modern lending landscape, be on high alert to safeguard against appraisal bias

CHLA Urges CFPB To End Trigger Lead "Junk Calls"

CHLA sends another letter urging the CFPB to focus on trigger lead solicitations.

CFPB Orders Freedom Mortgage To Pay $3.95M Over Housing Data Errors

CFPB proposed an order requiring Freedom Mortgage to pay a $3.95 million penalty