Borrowers File Class Action Lawsuit Complaint Against Wells Fargo and Fannie Mae Over Home Equity Conversion Mortgage HECM Reverse Mortgages and 95% Rule.
A class action lawsuit has reportedly been filed against Wells Fargo Bank, N.A. (“Wells Fargo”) and Federal National Mortgage Association a/k/a Fannie Mae (“Fannie Mae”) (collectively “Defendants”) in the United States District Court for the Northern District of California in San Francisco (styled Robert Chandler v. Wells Fargo Bank, N.A. and Federal National Mortgage Association a/k/a Fannie Mae, Civil Class Action Case No. 11-cv-3831) alleging, among other things, that Wells Fargo & Fannie Mae failed to abide by a key term of the federally insured reverse mortgages (“Home Equity Conversion Mortgages” or HECMs”) that Wells Fargo has sold and serviced and Fannie Mae has owned relating to the right of a borrower or the borrower’s estate or representatives to receive a 30-day notice when a loan becomes due and payable that they may sell the HECM mortgaged property for 95 percent of the current appraised value which amount may be less than the mortgage balance, according to the Wells Fargo & Fannie Mae reverse mortgage class action lawsuit complaint.
The Wells Fargo & Fannie Mae reverse mortgage class action lawsuit complaint is reportedly brought on behalf of the following putative class of persons, unless otherwise excluded:
All HECM borrowers, and the estates, heirs and personal representatives of such borrowers, whose loans are or were owned and/or serviced by Defendants, and who were not given the required 95% Rule notice prior to a Trustee’s sale or foreclosure, or whose property was sold without allowing them the right to sell or transfer their property for at least 95% of its appraised value.
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