BPOs are ordered by loan servicers when mortgage loans are severely delinquent and the property is nearing foreclosure.
On April 11, U.S. District Judge Yvonne Gonzalez Rogers granted final approval of the settlement at a hearing in the Northern District of California, noting that the settlement was “excellent,” according to a press release.
“For nearly five years, our partners … and their team worked tirelessly to secure this considerable settlement,” said Russell Budd, president and managing shareholder of Baron & Budd.
“The settlement they secured sends a powerful message that class action cases can provide meaningful, tangible recovery to hundreds of thousands of class members. I’m very pleased to know that our plaintiffs will receive compensation soon.”
Within the next 60 days, each of the nearly 290,000 members of the class will automatically receive a check with their portion of the settlement, which on average will total about $120 – more than double the fee markup each plaintiff paid, according to the release
Class members will not be required to complete paperwork or provide “proof” of their claim to receive payment.
The plaintiffs in the case alleged Wells Fargo fraudulently concealed charges for unlawfully marked up BPOs, charging borrowers who were already struggling financially more than double the actual cost of the BPOs.
Bias et al. v. Wells Fargo: case No.: 12-cv-00664 YGR, U.S. District Court, Northern District of California