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Lawsuit Blames Wells Fargo in Foreclosure Law Firm’s Demise

Oct 21, 2016
A judge in the U.S. District Court, Southern District of Texas (Houston) has ordered an injunction to the U.S. Department of Housing & Urban Development (HUD) to allow Allied Home Mortgage Corporation branches to resume originating Federal Housing Adminis

The law firm that played a crucial role in helping Wells Fargo foreclosure efforts has filed a lawsuit that blames the lender to contributing to the firm’s closure.

According to a Wall Street Journal report, the New Jersey firm Zucker, Goldberg & Ackerman accused the San Francisco-based Wells Fargo of dragging its feet to comply with a 2010 New Jersey Supreme Court order that required lenders to prove they had submitted all appropriate information prior to beginning the foreclosure process. The lawsuit stated that these delays resulted in Wells Fargo failing to pay the now-defunct firm for more than $2.5 million on its foreclosure-related cases. Most of the firm’s 335 workers were laid off last year.

“[Wells Fargo officials] were incapable for a very long period of time of complying with what the New Jersey Supreme Court said they should have been doing all along,” said Daniel M. Stolz, a New Jersey lawyer who put Zucker, Goldberg & Ackerman into bankruptcy on August 3, 2015.

Wells Fargo spokesman Tom Goyda responded to the lawsuit by stating the lawsuit “should not be viewed as credible.”

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