K&B In the News

By Rick Rothacker - September 25, 2017

“Wells Fargo has agreed to “good faith class settlement negotiations” to resolve a lawsuit that alleges the bank was making “stealth” mortgage modifications that could vastly increase homeowners’ borrowing costs, according to a filing Monday in federal bankruptcy court in Charlotte. Gaston County homeowners Christopher and Allison Cotton gained national attention in June when they filed their class-action lawsuit in federal bankruptcy court here against the San Francisco-based bank.”

By Rick Rothacker - July 13, 2017

“The Gaston County homeowners who have filed a class-action lawsuit against Wells Fargo are asking a judge in Charlotte this month to stop the bank from making alleged loan changes without borrower approval. The suit filed in June by Christopher and Allison Cotton gained national attention over its allegations that the San Francisco-based bank was making “stealth modifications” that could vastly increase homeowners’ borrowing costs.”

New York Times

By Gretchen Morgenson - June 14, 2017

“Any change to a payment plan for a person in bankruptcy is subject to approval by the court and the other parties involved. But Wells Fargo put through big changes to the home loans without such approval, according to the lawsuits. The changes are part of a trial loan modification process from Wells Fargo. But they put borrowers in bankruptcy at risk of defaulting on the commitments they have made to the courts, and could make them vulnerable to foreclosure in the future.”

By Jonnelle Marte - June 15, 2017

“Wells Fargo is facing more accusations that it made unauthorized changes to customers accounts — this time to their mortgages. The bank forced borrowers in bankruptcy into loan modifications by reducing their monthly mortgage payments, even though homeowners had not requested the adjustments, according to lawsuits filed against Wells Fargo [in 2016 and 2017].”

By Michael Hiltzik - Jun 15, 2017

“Wells Fargo is facing allegations of a new scandal, this time involving its treatment of mortgage borrowers in bankruptcy. Some of the borrowers allege that the bank attempted to quietly modify their mortgages so that their monthly payments would be lower — but the length of the loans would be longer, sometimes by decades.”

June 15, 2017

“Christopher and Allison Cotton had 16 years remaining on their mortgage when family medical expenses forced them into bankruptcy in 2014. Wells Fargo went ahead and modified the North Carolina couple’s mortgage several times without their authorization… The bank extended the term of the mortgage by nearly 26 years, documents say.”

Dallas Morning News

Kevin Krause - December 2016

“After emerging from bankruptcy in 2014, an Allen couple thought they had a fresh start. But the North Texas Tollway Authority continued to try to collect $26,000 in unpaid tolls, fees and other charges…The NTTA also got a warrant issued for Wood’s arrest and threatened to impound the couple’s only vehicle, records show.”

Karen Weise - October 22, 2010

“Wells Fargo says it has generally avoided the foreclosure paperwork scandal plaguing the nation’s banks because its employees personally review and verify every document that they sign. But a previously unpublished deposition details how that didn’t happen in at least one case.”

Dallas Morning News

October 2010

“For financially distressed homeowners, being notified that their mortgage company is lowering the boom and seizing their home is now compounded by the question of whether the firm even has the right to foreclose. Allegations have arisen that major banks rammed through foreclosure after foreclosure without giving many borrowers a fair shot at keeping their homes.”