BY BRAD BECKETT ON SEPTEMBER 21, 2022
HousingWire is reporting that Wells Fargo agreed to pay $94 million to settle a class-action lawsuit that placed more than 200k mortgage borrowers into forbearance during the pandemic, unlawfully and without their consent. Click here to read more.
According to the report, customers who inquired about forebearance, but did not formerly request it, got it anyway, damaging their credit scores and making it more difficult for them to refinance. Wells Fargo denied any wrongdoing in the settlement that includes over 212k loans.
“…Chief Financial Officer Mike Santomassimo said the company was content to lose ground in mortgage originations and is “really focused on our consumer and wealth clients.” He added that the servicing business would shrink over time.