FOR IMMEDIATE RELEASE
For More Information, Contact:
Law offices of Bernard Conway
100 East Walton #600
Chicago, Illinois 60611
Office 312 235 2052
November 11, 2010
Modification Mayhem: Chicago woman exposes WELLS FARGO in a Class Action lawsuit Chicago Attorney, Bernard Conway, filed a Class Action complaint late yesterday in the United States District Court for the Northern District of Illinois on behalf of Therese Crowley, Plaintiff vs. Wells Fargo Bank, N.A, d/b/a Wells Fargo Home Mortgage (Case # 10CV7256) for "failure to honor its contractual obligations under its Home Affordable Mortgage Program Agreements (HAMP Agreements) with its borrowers by not offering its borrowers loan modifications in compliance with the program." As the result of this failure, thousands of trusting homeowners were left in dire straits with no apparent recourse to saving their homes.
Crowley is a prime example of the type of homeowner that the HAMP programs were created to help. According to her HUD counselor, Crowley was well within the guidelines of the program. After her initial denial of her application by Wells Fargo, she escalated her HAMP request to the Office of the President of Wells Fargo. Crowley continued to receive a dizzying array of conflicting information by various Wells Fargo Employees. It became imminently clear the lack of transparency and multiple errors on the part of Wells Fargo made it impossible for Crowley to ensure the accuracy and compliance with HAMP guidelines for evaluating her application. After 18 exhaustive months, three modification applications (3), Wells Fargo repeatedly denied her HAMP requests . Crowley would receive multiple letters and phone calls from Wells Fargo encouraging her to Short Sell or Deed in Lieu the home to Wells Fargo; which would be in effect, to the sole benefit of Wells Fargo. Had Crowley followed the suggestion to Short Sale by Wells Fargo, it would essentially have stripped Crowley of any equity in the home. Further, Crowley would discover that Fannie Mae, investor on Crowley's loan, had extended an offer for a modification that Wells Fargo never presented to Crowley. In fact, Wells Fargo repeatedly claimed her "investor"(Fannie Mae) denied her Hamp Modification application.
A recent study shows that so called ―service providers like Wells Fargo make more money on a Foreclosure, Short Sale or Deed in Lieu transaction over the loan modification process. Wells Fargo has a financial incentive to ignore the HAMP guidelines and work to force a sale of Crowley‘s Property.
The "robo-signing" foreclosure debacle is the tail end of this process. The beginning is at the cynical approach by the Servicer which results in the wrongful denials of qualified homeowners for Hamp Loan Modifications. Homeowners need to see a detailed explanation of their modification denials to ensure that the Consumer is receiving a fair and accurate assessment and determination of their applications.
As Crowley said, “During this 18 month ordeal, I have been haunted about the countless people who have taken their lender at their word and may have needlessly lost their homes because they did not challenge or further investigate their Lender's refusal to modify their loan under The Making Home Affordable Program. I am not just fighting for myself. I want to make sure other people won't have to endure the same nightmare of harassment, frustration, and relentless stress that I have suffered. "
Wells Fargo has received $25 Billion in tax payer money under TARP to aid homeowners for modifications. To date they have only used a small fraction of that money relative to the amount of customer’s requesting HAMP loan modifications. Rather than utilizing the funds to aid homeowners, Wells Fargo is making it nearly impossible for the qualified homeowner to achieve a HAMP modification. To Crowley, this is just plain wrong.