• DYE CULIK PC | Consumer Protection Division

Judge Allows Culik Law Loan Mod Case vs. Wells Fargo to Proceed

Wells Fargo Bank, N.A. to dismiss homeowners’ lawsuit for wrongful foreclosure.

The lawsuit, filed in Berkshire Superior Court, alleges that Wells Fargo violated the Massachusetts Consumer Protection Act, Chapter 93A, by foreclosing on homeowners while they were under consideration for a loan modification under the federal Home Affordable Modification Program (HAMP).

Denying Wells Fargo’s claim in its entirety, the judge wrote that violations of HAMP that are unfair or deceptive may provide the basis for a lawsuit against a bank or mortgage servicer under Massachusetts law:

Although the Home Affordable Modification Program (HAMP), does not provide relief as a separate cause of action, it may be used in conjunction with other common law or statutory theories of recovery. In this case the plaintiffs have asserting a claim, among others, pursuant to 93A. See Ording v. BAC Home Loans Servicing, LP, 2011 WL 99016 (Jan. 10, 2011) (violation of HAMP guidelines is a violation of Chapter 93A).

This decision is another in a line of cases Culik Law has obtained holding that banks must comply with loan-modification guidelines.

Case was Berkshire Superior Court, case no. BECV2012-00124-A (November 27, 2012), against Wells Fargo Bank, N.A..

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