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DannLaw: CFPB/Wells settlement is welcome, but big bank will continue to abuse homeowners

Marc Dann

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DannLaw founder Marc DannWhile the $3.7 billion settlement between Wells Fargo and the Consumer Financial Protection Bureau is welcome news, it doesn’t resolve all the issues surrounding the bank’s bad behavior–a point made by CFPB Director Rohit Chopra who noted that Wells’ rinse-repeat cycle of violating the law has harmed millions of American families.” He also said the company is a serial offender that puts one third of American households at risk of harm and that finding permanent resolution to this bank’s pattern of unlawful behavior is a top priority.
As most of you know, holding Wells accountable is also a top priority for DannLaw. We successfully represented clients in a class action suit related to the same issues outlined in the CFPB order and we are currently pursuing cases in California and New Jersey.
In addition, we continue to recieve calls and emails from homeowners who are involved in home mortgage disputes with Wells. If Wells is your lender or servicer and you believe you are being abused by the bank please contact DannLaw today by calling Lisa at 216-250-4012, emailing intake@dannlaw.com, or visiting https://dannlaw.com/contact/ to schedule a no-cost consultation that will enable us to determine if you are entitled to financial compensation.
Under the terms of the agreement with the CFPB Wells will provide $2 billion in compensation to consumers for engaging in the following activities:
• Unlawfully repossessing vehicles and bungling borrower accounts: Wells Fargo had systematic failures in its servicing of automobile loans that resulted in $1.3 billion in harm across more than 11 million accounts.
• Improperly denying mortgage modifications: During at least a seven-year period, the bank improperly denied thousands of mortgage loan modifications, which in some cases led to Wells Fargo customers losing their homes to wrongful foreclosures.
• Illegally charging surprise overdraft fees: For years, Wells Fargo unfairly charged surprise overdraft fees – fees charged even though consumers had enough money in their account to cover the transaction at the time the bank authorized it.
• Unlawfully freezing consumer accounts and mispresenting fee waivers: Customers affected by these account freezes were unable to access any of their money in accounts at the bank for an average of at least two weeks.
The terms of the agreement require Wells to contact its victims. Eligible consumers don’t have to take any action.
We wish we could say we believe Wells will now clean up its act. But we don’t. We know the bank is taking advantage of homeowner and consumers every day. If you are one of them, please contact DannLaw today wo we can protect your rights, your family and fight for the compensation you deserve.

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The End of Covid Forbearance is here. Time to rework your loan. 

DannLaw founder Marc DannMortgage forbearance and other programs made available to homeowners during the COVID-19 pandemic are about to end. That means millions of homeowners are or will soon be pursuing loan modifications or other work out options with their lenders. Karen Ortiz, Roberto Rivera, and DannLaw’s highly experienced and knowledgeable legal staff are here to help families navigate the complicated process and select the payment structure that best meets their needs. Please contact us to arrange a no-cost, no-obligation consultation by calling 216-373-0539 or completing our contact form.

Changes at DannLaw

We are sad to announce that Attorney Whitney Horton is leaving DannLaw after being a valuable member of our team for more than seven years. If Whitney has been working on your case, a notice of substitution of counsel will be filed in the next few weeks. Whitney Kaster, who was at DannLaw before the pandemic is returning to the firm on Monday April 24. Attorney Kaster will work me and Emily White on foreclosure defense matters and with Brian Flick on Consumer Protection cases.  In addition, Amanda Severt who has been our administrative assistant has been promoted and will now work as a paralegal assigned to foreclosure cases and state court litigation.

 Student Loan Changes

The U.S. Department of Education is making changes to the Income Based Repayment program for Federal Student Loans that should enable lower income borrowers to fulfill their obligations faster and qualify for Public Service or other Loan forgiveness programs sooner. You may read about the changes here. Richard Cordray who served as Ohio Treasurer and AG before being named the first director of the Consumer Financial Protection Bureau and is now in charge of Student Loan Issues at the DOE drafted and implemented these significant improvements.  

Foreclosures Are Ramping Up 

Along with forbearance and other relief programs, foreclosure stays are ending.  That means hundreds and perhaps thousands of new judicial foreclosure actions will be filed in Ohio, New Jersey and other states. We have the experience, expertise, and knowledge needed to save your home.

Remember this important point: The filing of a foreclosure lawsuit is the beginning, not the end of the process. Please reach out to DannLaw or another attorney as soon as you know a foreclosure action has been filed against you. If you’ve been served with a foreclosure complaint you have a short time–28 Days in Ohio–to retain a lawyer and file an answer. The vast majority of people who retain us because they want to stay in their home are able to do exactly that.

In addition to defending the foreclosure action, we conduct a thorough investigation to determine if your mortgage loan servicer has followed all applicable rules and laws that govern mortgage lending. If we discover violations, we can bring and pursue claims against the mortgage company. Our foreclosure clients pay an affordable monthly payment into our trust account to cover the fees that we earn in their cases. We offer a free consultation. If you or anyone you know has been sued for foreclosure please contact us here, or call us at 216-373-0539. To schedule an appointment with me visit calendly.com/mdann.

 Regulation F Changes the Game for Debt Collectors and Consumers 

 The CFPB has enacted new strict rules that govern the manner in which debt collectors may contact you by mail, email, text, telephone or social media. You can read about the new regs here. In addition, Credit Reporting Agencies will no longer report most medical debt. This should help consumers improve their credit score. If you believe a debt collector has made a misrepresentation to you or contacted you by phone, letter, text, or email at an inappropriate time you may be entitled to financial compensation. Please feel free to contact us to discuss your situation.

 Data Breach Cases

Multiple courts have selected DannLaw to serve as Class Counsel in data breach Cases. A data breach occurs when a company fails to properly safeguard its customers’ personal information. Our legal staff devotes considerable time and resources to pursuing and securing just compensation for the inconvenience, expense, and aggravation data breach victims endure.

I have a new perspective on that today. I’ve been ensnared in multiple data breaches. Someone obtained my personal information and “took over” my bank account. I’ve spent 20 hours sorting out payments, ACHs and was forced to visit my bank three times. I have a renewed passion to ensure that companies who allow breaches to occur are held accountable for their actions.  If you are notified that your information is at risk due to a breach, contact us immediately so we can take all available legal steps to secure just compensation for you and other data breach victims.

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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.

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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 <bflick@dannlaw.com>
Cc: Marc Dann <mdann@dannlaw.com>,
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 <bflick@dannlaw.com> 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 <bflick@dannlaw.com> 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 <bflick@dannlaw.com> 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 <bflick@dannlaw.com> 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 <bflick@dannlaw.com> 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 <bflick@dannlaw.com> 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 <bflick@dannlaw.com> 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 <mdann@dannlaw.com>
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

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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.”

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DannLaw founder Marc DannAs the new year begins nearly all the mortgage support programs implemented in response to the Covid 19 pandemic are coming to an end. That means millions of homeowners who have taken advantage of mortgage forbearance must begin making their house payments again. Many are finding it difficult to secure permanent loan modifications or repayment plans, some are about to lose their homes because the foreclosure moratoriums imposed by the Consumer Finance Protection Bureau (CFPB) have been lifted, and others are unable to make mortgage payments  because advance Child Tax Credit payments ended abruptly  just as a new wave of COVID-19 infections began sweeping across the nation.

The mortgage and foreclosure experts at DannLaw are already helping hundreds of homeowners deal with the challenges we described above. If you or someone you know is leaving forbearance, attempting to negotiate a loan modification with a lender, facing foreclosure, or having difficulty making mortgage payments please contact us at once to arrange a no-cost, no-obligation consultation.

It is important to contact experienced attorneys like the members of the DannLaw legal team because loan mods and foreclosure proceedings are extremely complicated areas of the law. Last week Whitney Horton, Brian Flick, Dan Solar and I shared our expertise and strategies with more than 200 lawyers from across the U.S. As we prepared our presentation, we identified numerous problems borrowers are confronting as they deal with lenders and servicers:

  1. OH Foreclosure TimelineMortgage loan servicers often provide inaccurate and/or incomplete information about the loss mitigation options available to borrowers leaving forbearance or seeking loan modifications.
  2. The CFPB has developed and implemented specific rules and procedures designed to protect homeowners with federally-backed loans, i.e. those issued by the FHA, VA, USDA or owned by Freddie Mac or Fannie Mae, who are exiting forbearance. Unfortunately, some servicers are ignoring the rules and pushing borrowers to accept options that offer less favorable terms or are easier for the lender to implement. This deplorable practice puts borrowers at risk of entering into a repayment plan that isn’t right for them.
  3. Servicers may seek exceptions to the above-mentioned rules in certain circumstances.
  4. Servicers are misrepresenting the rights of borrowers whose FHA, VA, USDA, Fannie Mae or Freddie Mac loans have been sold to new, private investors.
  5. The incompetence of mortgage company staff combined with the mail delivery problems that are plaguing the U.S. Postal Service have caused some borrowers to miss first payment deadlines established under reinstatement or loan modification agreements through no fault of their own.
  6. Some mortgage servicers are adding unjustified/unwarranted fees and charges to mortgage loan balances.
  7. People attempting to contact servicers by phone are placed on hold for hours. When they do manage to speak to a staff member, they often receive inconsistent or incorrect information.
  8. Mortgage companies are not completing their work within the 30-day time limit established under the CFPB rules.
  9. Mortgage companies have initiated foreclosures against borrowers in violation of Federal Dual Tracking prohibitions.

While the CFPB offers extensive online resources, borrowers who attempt to deal with servicers on their own are at a serious disadvantage. Accepting the wrong loan modification or repayment plan could put your home and your family’s financial future at risk. Fortunately, you don’t have to go it alone: the experienced attorneys at DannLaw are here to help.

Whether you are ready to exit forbearance or are now facing foreclosure, we are just a phone call or email away. To arrange a free consultation call 216-373-0539 or complete and submit our contact form.

Stay well, stay safe, and Happy New Year to you and yours.