Wells Fargo settles class action over marked up fees for appraisals

Posted on: November 28th, 2016 by Steve Larson
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FeeWells Fargo has agreed to pay $50 million to a class of more than 250,000 mortgage holders to settle claims that the bank improperly marked up fees for third-party home appraisals following loan defaults in California.  The complaint alleged that although the mortgage agreements allowed Wells Fargo to charge borrowers for getting broker price opinions (“BPO’s”) from third-party real estate brokers, Wells Fargo secretly charged more for the BPOs than the bank paid for them.  A BPO is an informal type of home appraisal prepared by a real estate broker that a lender will typically demand once a borrower defaults on a residential loan.

The case is Latara Bias, et al., v. Wells Fargo & Co., et al., case number 4:12-cv-00664, in the U.S. District Court for the Northern District of California.