Wells Fargo & Co. has agreed to pay $50 million to settle a racketeering lawsuit accusing it of overcharging hundreds of thousands of homeowners for appraisals ordered after they defaulted on their mortgage loans, Reuters reported today. The proposed settlement, which requires court approval, was disclosed in a filing on Friday in an Oakland, Calif. federal court. If approved, it will resolve nationwide claims that Wells Fargo charged much more than it paid for third-party appraisals, exploiting borrowers who could least afford it and driving them further into default. Wells Fargo's settlement of the lawsuit comes as the bank is still recoiling from a scandal over sales targets that drove employees to create unauthorized accounts for customers. Multiple lawsuits over those practices are pending. Read more.
Mortgage escrow accounts remain a mystery in many cases as debtors’ and creditors’ attorneys both struggle to understand the calculations set forth in them and the effect they have on chapter 13 cases. A panel at the 2016 Hon. Steven W. Rhodes Consumer Bankruptcy Conference on Nov. 11 will focus on escrow accounts, as well as new proof-of-claim forms and how they treat escrow accounts. Click here to register.
