What happened with Wells Fargo and loan modifications

Between 2009 and 2015, Wells Fargo systematically denied or delayed loan modifications to borrowers who were behind on payments. The bank told customers they were in a trial modification period, then foreclosed on them anyway—sometimes while their modification was still pending. Borrowers lost homes they could have kept, or paid thousands in fees for modifications that never went through.

Multiple class action lawsuits were filed against Wells Fargo for these practices. The largest settlement, approved in 2018, required the bank to pay $3.7 billion to borrowers who were harmed. Other settlements followed for specific groups of borrowers—those in certain states, those who lost homes to foreclosure, and those who paid fees for modifications that failed.

If you were a Wells Fargo mortgage borrower during this period and experienced a denied modification, a failed trial period, or a foreclosure while your modification was pending, you may have been part of one of these lawsuits.

Key Takeaways

  • Wells Fargo settled multiple class action lawsuits for denying or delaying loan modifications between 2009 and 2015, with the largest settlement worth $3.7 billion.
  • You may be part of a settlement class if you were a Wells Fargo borrower who was denied a modification, placed in a failed trial period, or foreclosed on while a modification was pending.
  • Settlement payments vary by lawsuit and by what happened to your loan—some borrowers received direct payments, others received principal reduction on their mortgage, and some received both.
  • Most settlement claims periods have closed, but you can still find out whether you were part of a class and what you may have received by contacting the settlement administrator or reviewing court documents.

The different Wells Fargo settlements and who they covered

Wells Fargo faced multiple lawsuits, and each one settled separately. The main settlement in 2018 covered borrowers nationwide who were denied modifications or placed in trial modifications that failed. That settlement paid out roughly $3.7 billion, though the actual amount per borrower varied widely depending on the harm they suffered.

Separate settlements covered specific groups: borrowers in California, borrowers in New York, borrowers who were foreclosed on, and borrowers who paid fees for modifications. Some borrowers were part of multiple settlements and received payments from more than one. The settlement you were part of depends on where you lived, what happened to your loan, and when it happened.

Each settlement had its own claims period—a window of time when you had to submit a claim to receive money. Most of these periods have closed. However, if you were part of a class and did not submit a claim, you may still be may have access to to a payment from the settlement fund, even after the claims period ended. The settlement administrator holds unclaimed funds and may distribute them according to the settlement terms.

How much money borrowers received from these settlements

Settlement payments ranged from a few hundred dollars to tens of thousands, depending on the specific lawsuit and what happened to your loan. Borrowers who were foreclosed on while a modification was pending typically received more than those who were straightforward denied a modification. Borrowers who paid fees for failed modifications received compensation for those fees plus additional damages.

Some settlements included principal reduction on the mortgage itself rather than cash payments. This meant Wells Fargo reduced the amount you owed on your home loan. Other settlements paid cash directly to borrowers. A few settlements did both—reduced principal and paid cash.

The exact amount you would have received depends on factors like how long your modification was delayed, how much you paid in fees, whether you lost your home, and the specific settlement you were part of. If you want to know what you were owed, you need to identify which settlement or settlements covered your situation.

How to learn about you were part of a settlement

Start by identifying the time period when your modification was denied or delayed. If it was between 2009 and 2015, you may have been affected. Next, determine which settlement you might have been part of—this depends on your state and what happened to your loan.

Contact the settlement administrator for the specific lawsuit. Each settlement had an administrator responsible for processing claims and managing the settlement fund. You can find the administrator's name and contact information in the court documents for that case, or by searching for "Wells Fargo loan modification settlement" plus your state name.

You can also search the settlement website directly if it is still active. Some settlement websites allow you to enter your loan number or name to see whether you were part of the class. If the claims period has closed, the administrator can still tell you whether you were may be able to access and what you should have received.

What to do if you believe you were harmed but did not receive payment

If you were a Wells Fargo borrower during the relevant time period and experienced a denied modification, failed trial period, or foreclosure while a modification was pending, but you did not receive a settlement payment, you have options.

First, contact the settlement administrator for the specific lawsuit. Provide your loan number, the dates of your modification request, and any documentation you have—letters from Wells Fargo, trial modification agreements, foreclosure notices. The administrator can confirm whether you were part of the class and whether a payment was issued in your name.

If a payment was issued but you never received it, the administrator may be able to locate it or reissue it. If you were part of the class but did not submit a claim before the important date, you may still be may have access to to a share of unclaimed settlement funds. The administrator can explain how that process works and what documentation you need to provide.

If you believe you were harmed but were not included in any of the settlements, you may want to consult with an attorney who handles mortgage litigation. Some attorneys work on contingency, meaning they take a percentage of any recovery rather than charging you upfront.

Understanding the difference between settlement money and loan modification

Settlement payments are compensation for the harm Wells Fargo caused—the stress, the fees you paid, the home you lost, or the delay in getting your loan modified. They are not the same as getting your loan modified now.

If you still have a Wells Fargo mortgage and want to modify it today, you would need to explore through Wells Fargo's current loan modification program. Settlement money does not automatically modify your loan. However, some settlements included provisions requiring Wells Fargo to review denied modifications again or to offer modifications to borrowers who were previously denied. If you were part of one of those settlements, Wells Fargo may have contacted you separately about a new modification review.

If you received settlement money but your loan was never modified, or if you lost your home and want to understand what happened, the settlement documents and court filings can provide that history. You can access these documents through the federal court system's PACER database or through the settlement administrator's website.

Frequently Asked Questions

Can I still claim money from a Wells Fargo loan modification settlement if the claims period closed?

It depends on the specific settlement. Most claims periods have closed, but unclaimed settlement funds may still be available. Contact the settlement administrator to find out whether you were part of the class and whether funds remain. Some settlements distribute unclaimed money to class members who did not submit claims, while others donate unclaimed funds to charity.

How do I know which Wells Fargo settlement I was part of?

Your state and what happened to your loan determine which settlement covered you. If you were denied a modification or foreclosed on between 2009 and 2015, search for "Wells Fargo loan modification settlement" plus your state name. The settlement website or court documents will list the class definition and tell you whether you fit it.

What if Wells Fargo says I was not may be able to access for a modification in the first place?

The settlements covered borrowers who were wrongly denied modifications or placed in trial periods that failed. Whether you were actually may be able to access for a modification under Wells Fargo's guidelines at the time is a separate question. The settlement documents explain what the bank had to prove about your loan to justify a denial. If you believe the denial was improper, an attorney can review your loan file and the bank's decision.

Do I need a lawyer to get settlement money?

No. You can contact the settlement administrator directly and submit a claim yourself. However, if you have questions about whether you were part of a settlement, what you should have received, or whether you were wrongly excluded, an attorney who handles mortgage litigation can review your situation at no upfront cost.

If I received settlement money, does that mean my loan is modified?

No. Settlement money is compensation for the harm caused by the denied modification or foreclosure. It does not modify your loan. If you still have a Wells Fargo mortgage and want to modify it, you would need to explore separately through their current program. Some settlements required Wells Fargo to review previously denied modifications again, so check your settlement documents to see if that applies to you.