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A class-action lawsuit has been filed against Wells Fargo Bank NA alleging that the mortgage lender unlawfully “corrected” agreements for thousands of customers’ Wells Fargo home loan terms. Plaintiffs have accused Wells Fargo of altering maturity date on loans, a change they claim damages home values and marketability for mortgage holders.
The complaint was filed by Philip and Ingrid Tippett of Florida. The Tippetts claim that Wells Fargo unlawfully changed the maturity dates on their home equity line of credit after realizing it had failed to set that loan to terminate after the mortgages’ final maturity date. According to the class action lawsuit, failing to adjust these dates would have resulted in the debts becoming unsecured – increasing the bank’s risk that they won’t be paid.
However, rather than informing customers of the mistake so that they could authorize a change, Wells Fargo allegedly took it upon itself to unilaterally file thousands of documents meant to “correct” the maturity dates in order to make them compliment the home equity loans. These documents are reportedly referred to by Wells Fargo as an “affidavit of correction.”
The class-action lawsuit argues that these changes damage the titles of the homes tied to the mortgages. This damage, in turn, reduces the homes’ property value and marketability, according to the complaint. These unauthorized changes allegedly constitute a criminal offense under state laws in Michigan, Colorado, California, Florida, Pennsylvania, and possibly other states.
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