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DannLaw, Zimmerman Law Offices file class action suit against Wells Fargo alleging bank discriminated against Black borrowers

Managing Partner

April 6, 2022 By Marc Dann

Wells FargoClaiming that Wells Fargo has engaged in a “…pervasive pattern and practice of placing Black Americans at a disadvantage in comparison to White Americans with respect to their applications for mortgage loans,” attorneys from DannLaw and the Zimmerman Law Offices filed a class action lawsuit against the giant bank in the United States District Court for the Eastern District of New York on Tuesday, April 6, 2022. The pleading in the case may be viewed here: Ifemoa Ebo v Wells Fargo.

Wells Fargo’s disturbing discriminatory behavior was documented in an extensive story published by Bloomberg in March. According to the report only 47% of Black homeowners who completed a refinance application with Wells Fargo in 2020 were approved, compared with 72% of White homeowners. By comparison other lenders had much smaller disparities in approval rates ranging from 7% to 12%. Bloomberg also noted that “Wells Fargo approved a greater share of applications from low-income White homeowners than all but the highest-income Black applicants, who had an approval rate about the same as White borrowers in the lowest-income bracket.”

Wells also discriminated against Blacks who applied for new mortgage loans. A review of publicly available data collected by the CFPB reveals that the bank approved applications submitted by Blacks at a rate 21% lower than those submitted by Whites. The disparity in approval rates at other lenders, including Chase, Quicken, United Wholesale Mortgage was approximately 10%.

Ms. Ebo’s case puts a face to Bloomberg’s reporting. In late 2021 she began searching for and found a new home in Brooklyn’s East Flatbush neighborhood. After signing a purchase agreement for $900,000 she submitted a mortgage loan application to Wells. At the time her credit score was approximately 800, her annual salary was $178,000, and she had no significant debt.

On November 1, 2021, Wells preapproved her for a loan of $883,698. The preapproval was set to expire on February 24, 2022. Ms. Ebo then immediately began working with the bank to secure final approval of the loan. She submitted all documentation requested by Wells, including W-2 forms, paystubs, and bank account statements in a timely fashion. On December 29, 2021, she received a “Commitment Letter” notifying her the application had been approved and advising her that she only needed to submit some additional documentation “in order to complete the final underwriting and funding of” the loan.

Things immediately went off the rails. In January and February Wells again asked for additional information much of which she had already submitted. She was also asked to provide items that were, according to the lawsuit, unnecessary, unduly burdensome, and irrelevant. For example, she was asked to explain why she made a monthly credit card payment of $290 to her own account and for a bank statement for a bank account that did not exist.

As Wells’ unnecessary and duplicative information requests continued into late February and March Ms. Ebo told the bank she was concerned her preapproval would expire before she received her loan even she was highly qualified and had supplied all documentation they had requested.

Her concern was justified. On March 22, 2022, the seller of the property cancelled the purchase contract with Ms. Ebo because Wells had not approved her financing and it was unclear if they ever would. She informed Wells of the seller’s decision that same day and accordingly, did not and never will receive the loan.

This is not the first time the lender has been accused of engaging discriminatory behavior. In 2012, the bank entered into a consent decree with the U.S. Justice Department to resolve claims it had unfairly steered Black and Hispanic borrowers into subprime mortgages and charged higher fees and interest rates than they did whites. At the time Wells paid $184 million to thousands of borrowers and agreed to adopt new compliance policies.

“Wells’ treatment of Ms. Ebo is unconscionable, illegal, but not surprising in light of the company’s history, Bloomberg’s reporting and the conversations we’ve had with others who were subjected to the bank’s outrageous practices,” DannLaw’s Javier Merino said. “Clearly, Wells has not been deterred by the laws that prohibit discrimination. Perhaps being held accountable in court will motivate them to change their ways and treat all applicants, regardless of race, equally and fairly in the future.”

The lawsuit seeks actual damages, statutory, and punitive damages, attorney fees and costs. For more information please contact Marc Dann at 330-651-3131.

Filed Under: Class Action Lawsuit, Founding Partner, In the News, Managing Partner, Mortgage Fraud Tagged With: Consumer Fraud, deceptive practices, Loan Modification, Marc Dann, Mortgage Fraud, Wells Fargo

February 15, 2022 By Marc Dann

DannLaw founder Marc DannWe love receiving shout-outs from our clients—even from those who took a little while to become our clients.
WE Just received this email from a person who contacted us in November of 2021because he was not happy with the lawyer who was handling his bankruptcy. He spoke to Brian Flick, leader of DannLaw’s Bankruptcy Practice Group at the time, but decided to stick with the law firm he had hired.
He reached out to us again three months later and asked if we could help him save his home.
Our answer: absolutely.
His response was priceless.
If you are facing foreclosure, need to negotiate a loan modification, or are attempting emerge from mortgage forbearance, don’t delay, schedule a no-cost, no-obligation consultation today.
You can contact us by phone at (216) 373-0539, DM us via the DannLaw Facebook page, or complete and submit our contact form: https://dannlaw.com/contact/
As this client learned, we will always be here to help…Read the entire email string below.

From: xxxx

Date: Saturday, February 12 2022 at 11:43 AM EST
Subject: Re: Case
To: Brian Flick <[email protected]>
Cc: Marc Dann <[email protected]>,
Awesome. I really got a shitty attorney for this case. I regret not retaining your firm in the 1st place. Thanks again

Sent from my iPhone


On Feb 12, 2022, at 10:37 AM, Brian Flick <[email protected]> wrote:
xxxx,
Good to hear from you.
Can you check my calendar for Tuesday, Wednesday or Thursday via Calendly to find a time that works for you based on my availability?
Thank you.
Brian D. Flick, Esq.

DannLaw


On Fri, Feb 11, 2022 at 7:24 PM xxxx wrote:
Hi Brian
I spoke with you before about my chapter 13 case. It was dismissed. I would like to try and work with first and second mortgage companies to keep my house. My phone number is 14404129455
Thanks
xxxx

Sent from my iPhone


On Nov 22, 2021, at 5:42 PM, Brian Flick <[email protected]> wrote:
Sounds good.
Brian D. Flick, Esq.
DannLaw

On Mon, Nov 22, 2021 at 5:30 PM xxxx wrote:
I’ll ring you up wends at 10

Sent from my iPhone


On Nov 22, 2021, at 4:53 PM, Brian Flick <[email protected]> wrote:
xxxx,
I have some availability tomorrow and Wednesday. Best window would be Wednesday before 11.
Thank you.
Brian D. Flick, Esq.

DannLaw


On Mon, Nov 22, 2021 at 4:51 PM xxxx wrote:
Brian
I did not want to be a jerk and call you on a Friday night. Just let me know what works and I’ll be available.
Thanks
xxxx

Sent from my iPhone


On Nov 19, 2021, at 4:37 AM, Brian Flick <[email protected]> wrote:
xxxx,
If you’d like to call me after 5, I can be available. I’m booked pretty solid all day until then.
Brian D. Flick, Esq.

DannLaw


On Nov 18, 2021, at 8:47 PM, xxxx wrote:
Brian
Sorry today turned into a wreck. If you can chat tomorrow it would be much appreciated. I’m very frustrated at how my case is being handled.
Thanks
xxxx

Sent from my iPhone


On Nov 18, 2021, at 10:39 AM, Brian Flick <[email protected]> wrote:
xxxx,
Feel free to call me at your convenience today. I’ve got a quick call at 11, 12, am out for a personal matter from 1:30-3ish and then quick calls at 4 and 4:30.
Thank you.
Brian D. Flick, Esq.

DannLaw


On Thu, Nov 18, 2021 at 9:25 AM xxxx wrote:
Sounds great. Anytime today or tomorrow is cool. Just let me know

Sent from my iPhone


On Nov 16, 2021, at 6:01 PM, Brian Flick <[email protected]> wrote:
How about Thursday at 10:30?
Brian D. Flick, Esq.

DannLaw


On Tue, Nov 16, 2021 at 5:31 PM xxxx wrote:
Thank you for the quick response. I have a call with chapter 13 trustee on 930 am on Thursday, so anytime after that. I’m also available on Friday as well
Thanks
xxxx

Sent from my iPhone


On Nov 16, 2021, at 12:44 PM, Brian Flick <[email protected]> wrote:
xxxx:
Marc forwarded your email to me as I manage the firm’s bankruptcy practice.
I have reviewed the docket for your case and we’d be happy to discuss representation. What is your availability on Thursday or Friday for an extended call?
Thank you.
Brian D. Flick, Esq.

DannLaw


From: xxxx
Date: Tuesday, November 16 2021 at 11:01 AM EST
Subject: Case
To: Marc Dann <[email protected]>
Hello sir
I have filed bankruptcy but I’m having issues with my current representation. If I can’t get any help that we discussed previously, is it possible we could chat and maybe have you take over this case?
Thanks
xxxx
Sent from my iPhone

Filed Under: Bankruptcy, Foreclosure, Founding Partner, Managing Partner Tagged With: Bankruptcy, Foreclosure Defense, Marc Dann

February 2, 2022 By Marc Dann

DannLaw founder Marc DannDannLaw Founder and former Ohio Attorney General Marc Dann today expressed satisfaction with the $12.9 million settlement that has been reached in the firm’s class action lawsuit against Well Fargo Bank, N.A. Judge Timothy Black of the Federal District Court for the Southern District of Ohio signed an order approving the settlement on January 25, 2022. More than 1,800 class members will receive between $1,000 and $19,000. While Wells agreed to the settlement, the company admitted to no wrongdoing in the matter.

DannLaw’s complaint in Ethan Ryder et. al. v Wells Fargo may be viewed and downloaded here1413000-1413765-wells complaint (2)

DannLaw and a number of other firms filed the suit in August 2019 on behalf of thousands of homeowners who qualified for but were not offered a home loan modification or repayment plan under the U.S. Department of Treasury’s Home Affordable Modification Program (HAMP) due to what Wells Fargo termed a “glitch” in the computer software the bank used to evaluate applications.

“In addition to being a major victory for consumers, this case underscores the importance of the fee-shifting provisions of the federal laws and regulations that govern the mortgage industry,” Dann said. “Those provisions enable us to fight for working-and middle-class families by holding big banks accountable when they act irresponsibly. Without fee shifting, clients like ours would be left with little or no recourse when lenders and servicers break the rules.”

Wells Fargo

Dann also noted that multi-million-dollar settlements strengthen consumer protection laws by deterring bad behavior in the financial services industry. “State and federal regulators simply don’t have the manpower or resources to pursue all the bad actors in the financial services sector,” Dann said. “The civil justice system empowers DannLaw and other consumer protection firms to police the industry and secure justice and just compensation for people who have been abused—no matter how many challenges we encounter or how much time and effort it takes to win.”

Dann praised the work of DannLaw Managing Partners Brian Flick, Dan Solar, and Javier Merino as well as the firms that co-counseled on the case. “I’m incredibly proud of our performance and our total commitment to our clients,” the former Ohio AG said. “The fact that a team of talented, tireless consumer lawyers can take on the biggest ‘white shoe’ law firms in the country and win demonstrates why the American legal system is the best in the world and why we will continue to use it to protect homeowners and consumers for years to come.”

Filed Under: Class Action Lawsuit, Consumer Fraud, In the News, Managing Partner, Mortgage Fraud, RESPA Tagged With: deceptive practices, Loan Modification, Marc Dann, RESPA, Wells Fargo

January 10, 2022 By Marc Dann

Ocwen logo
Ocwen/PHH: The bad guys who tried to steal Riad Ghosheh’s home. Nearly 12,000 consumers have lodged complaints about the company with the CFPB.

In 2010 Kim Naimoli of Geneva, New York who was struggling to make her mortgage payments in the wake of the 2007-2008 collapse of the housing market, applied for a loan modification under the provisions of the federal Home Affordable Modification Program (HAMP). Over the next six years Ms. Naimoli did everything right: she completed and returned forms, complied with document requests, made her house payments on time, and, in accordance with the law, filed a “Notice of Error” (NOE) when Ocwen the company that was servicing her loan made mistakes.

During that same period Ocwen, now known as PHH, did everything wrong. The company failed to register mortgage documents, refused to abide by the terms of the loan modification agreement it had approved, did not acknowledge or respond to correspondence from Ms. Naimoli or her legal counsel, began refusing to accept her mortgage payments, revoked the loan mod agreement, and rejected an NOE requesting that the firm correct its blatant errors.

In 2017 DannLaw, one of the nation’s leading consumer protection law firms, sued Ocwen/PHH on Ms. Naimoli’s behalf in the Federal District Court for the Western District of New York alleging the company had committed multiple violations of the federal Real Estate Sales Practices Act (RESPA). In April of 2020 Judge Elizabeth A. Wolford granted the company’s motion for summary judgement and dismissed the case.

DannLaw immediately appealed and, in what DannLaw founder and former Ohio Attorney General Marc Dann hailed as a major victory for homeowners, the United States Court of Appeals for the Second Circuit reversed Judge Wolford and held that Ocwen/PHH had indeed violated the law. According to Dann the decision, handed down on January 7, 2022, will have wide-ranging impact on the mortgage servicing industry because the New York City-based Second Circuit is one of the most influential courts in the federal judicial system.

The significance of the case is underscored by the fact that the judges asked the Consumer Financial Protection Bureau to a file a brief after oral argument. In the brief the CFPB essentially supported DannLaw’s position.

Javier Merino, leader of the DannLaw team that litigated the case said Ocwen/PHH never denied engaging in the conduct that nearly cost Ms. Naimoli her home. “The record is clear: the company made numerous errors, would not correct them, and then used their mistakes as justification for walking away from the loan mod they had previously approved,” he said. “Once we got them into court, they contended that because their admitted misdeeds were related to the denial of the loan mod and not mortgage servicing they weren’t covered by RESPA. Fortunately, the Second Circuit saw through that specious argument and ruled in our favor.” The decision may be viewed here.

“Ocwen/PHH is perennially ranked among the worst mortgage servicers in the U.S. so I’m certainly not surprised that their bad acts served as a catalyst for this landmark decision,” Marc Dann noted. “I find it both incredibly satisfying and ironic that the company’s persistent and willful violations of the law will strengthen and expand the protections offered by RESPA and benefit homeowners who are too often abused by the mortgage servicing industry.”

Dann said the case, which took years to move through the courts, demonstrates the importance of RESPA’s fee-shifting provisions which balance the legal playing field. “Contingency fee arrangements ensure that homeowners like Ms. Naimoli have the opportunity to seek and secure justice and receive the financial compensation they need and deserve,” he said. “They enable plaintiff’s law firms like ours to stand toe-to-toe with and defeat the white shoe law firms that represent the financial services industry case after case, year after year.”

Dann also said the case illustrates why borrowers must document in writing and preserve all communications and interactions they have with lenders. “The records Ms. Naimoli retained, including delivery receipts and originals and copies of all correspondence, allowed us to present clear and convincing evidence of Ocwen/PHH’s conduct to the Court. The value of those records and the role they played in our victory cannot be understated.”

For more information please contact Marc Dann at 216-373-0539 or email [email protected]

Filed Under: Attorneys, CFPB, Consumer Fraud, Foreclosure, Founding Partner, In the News, Managing Partner, Mortgage Fraud, RESPA Tagged With: Consumer Fraud, deceptive practices, Foreclosure Defense, Loan Modification, Mortgage Fraud, RESPA, U.S. Economy

August 24, 2021 By Marc Dann

The legal team of DannLaw and Advocate Attorneys LLP scored an important victory today when the Tenth District Court of Appeals ruled that Franklin County Common Pleas Court Judge Michael Holbrook erred when he denied the firms’ request for an order that would force the state to restore federally funded supplemental unemployment insurance benefits cut off by Governor DeWine in May. The decision may be viewed/downloaded here: Appeals decision

In a 2-1 decision Judges Michael Mentel and Terri Jamison denied the state’s motion to dismiss the case and sent it back to Judge Holbrook for further proceedings. According to former Ohio Attorney General and DannLaw founder Marc Dann, an evidentiary hearing has been set for Friday at 9:00 A.M. in Courtroom 5B located in the Franklin County Government Center, 345 South High Street, Columbus, OH.

“We are obviously pleased by the ruling and excited to have the opportunity to continue fighting to restore these much-needed benefits,” Andrew Engel of Advocate Attorneys LLP said. “Throughout this state thousands of people have been crushed by the pandemic and the situation is growing worse as the Delta variant spreads across Ohio. The impact of the Governor’s callous, politically motivated decision to rescind the benefits has been devastating and it should be reversed as quickly as possible.”

“While we are more than ready to continue to argue the case in court, we urge the Governor to contact the Biden Administration and ask for the benefits to be restored retroactively,” Dann said. “Not only would that be the right thing to do from a legal, moral, and ethical standpoint, it makes sense economically because it would immediately pump tens of millions of dollars into the coffers of Ohio businesses and the pockets of their employees. That means restoring the supplemental payments would help the unemployed who desperately need them and the state as a whole.”

DannLaw’s Brian Flick noted that after the state of Indiana lost a similar lawsuit, officials asked for and received retroactive benefits. “If Governor DeWine makes the request, I’m confident the Biden Administration will say ‘yes’ and the federal dollars will begin flowing. The Governor should end the legal wrangling and make the request today.”

For more information please contact Marc Dann at 330-651-3131 or email [email protected]

Filed Under: Covid-19, Founding Partner, Managing Partner Tagged With: Coronavirus, Covid-19, Federal unemployment benefits, Marc Dann, U.S. Economy

August 18, 2021 By Marc Dann

Lawyers from DannLaw and Advocate Attorneys LLP will continue the legal battle to force Governor Mike DeWine to accept federally funded supplemental unemployment insurance benefits today in the Tenth District Court of Appeals.  The hearing in the case, Bowling et al v. DeWine et al will begin at 1:00 PM and may be viewed here: (3) Ohio Tenth District Court of Appeals – YouTube.

The DannLaw/Advocate Attorneys legal team filed the lawsuit in Franklin County Common Pleas Court shortly after the governor and Matt Damschroeder, Director of the Ohio Department of Jobs and Family Services, announced that the state would terminate Ohio’s participation in the Federal Pandemic Unemployment Compensation (FPUC), Pandemic Unemployment Assistance (PUA), and Pandemic Emergency Unemployment Compensation (PEUC) programs on June 26, 2021. The plaintiffs argue that Ohio Revised Code Section ORC 4141.43(I) requires the state to accept the benefits and that DeWine and Damschroeder lacked the legal authority to cut them off.

On July 29 Franklin County Common Pleas Court Judge Michael Holbrook denied the plaintiff’s request for a writ of mandamus that would force the state to restore the $300 a week supplemental benefits through September 6, the sunset date set by the Biden Administration. The plaintiffs are asking the Tenth District Court to reverse the trial court’s decision and order the state to immediately restore the federally funded benefits. The brief may be viewed here: Bowling Candy 2021 07 30 Appellate Brief

Former Ohio Attorney General and DannLaw founder Marc Dann was set to argue the case, but he is now in quarantine after testing positive for COVID-19 despite having been vaccinated earlier this year. “My situation illustrates the fact that COVID-19 remains a serious threat to the health and financial well-being of Ohioans,” Dann said. “While I am fortunate enough to be able to work from home, many Ohioans, including our clients in this case, simply cannot. That is why we are fighting to force the governor to rescind his callous and politically motivated decision to terminate benefits people need to survive during the ongoing crisis.”

Andrew Engel, who will present the plaintiff’s case, noted that although the policy considerations and practical impact of DeWine’s decision are important, the Bowling case raises two purely legal issues: May the State refuse to participate in the FPUC for its entire term and did the Governor possess the authority, by himself, to terminate Ohio’s participation in the FPUC program? “If the answer to either of these questions is ‘no,’ then we believe the Court must reverse the trial court and order the state to restore the benefits,” Engel concluded.

For more information please contact Marc Dann at 216-373-0539 or [email protected]

Filed Under: Founding Partner, In the News, Managing Partner Tagged With: Coronavirus, Covid-19, Marc Dann, U.S. Economy

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