Wells Fargo accused of misleading homeowners in mortgage crisis aftermat

Wells Fargo is being accused of misleading homeowners who were seeking to lower their home payments in the aftermath of the mortgage crisis.

A class-action lawsuit filed in White Plains federal bankruptcy court says the scandal-ridden bank mishandled loan modification trials it was required by law to entertain following the 2008 mortgage meltdown.

According to the suit, the bank told certain underwater mortgage holders that they could qualify for reduced monthly payments — and keep their homes — if they followed certain procedures, including making regular payments at the reduced rate for at least three months.

But when it came time to make the reduced payments permanent, the borrowers were rejected for “title issues” that had not been disclosed to them in advance, the lawsuit said.

Read on.

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