Individuals who took out an FHA-backed residential mortgage with Wells Fargo who believe they may have overpaid their mortgage insurance premium are encouraged to contact the attorneys at Peiffer Wolf Carr Kane & Conway for a FREE CONSULTATION by filling out a Contact Form or by calling 504-523-2434.
The Consumer Protection lawyers at Peiffer Wolf Carr Kane & Conway are pursuing claims against Wells Fargo based on their admitted practice of overcharging FHA borrowers for monthly mortgage insurance premiums. Borrowers may have overpaid months or even years’ worth of unnecessary premiums to Wells Fargo.
The federal government has specific rules governing the payment of mortgage insurance premiums. In many instances, the FHA will automatically cancel the borrower’s monthly mortgage insurance payment obligation when certain conditions are satisfied.
Wells Fargo recently disclosed a “systemic” issue whereby it continued to charge FHA borrowers for mortgage insurance premiums even after the FHA stopped requiring those payments. This practice is contrary to federal law governing the assessment of mortgage insurance premiums and also was done in breach of the mortgage contract between Wells Fargo and the borrower. Borrowers whose loans were issued prior to 2015 are most likely to be affected.
If you believe Wells Fargo may have collected mortgage insurance payments from you even after the obligation had been canceled by the FHA, it is imperative to take action before it is too late. Peiffer Wolf Carr Kane & Conway has represented thousands of individuals, and we remain committed to fighting on behalf of our clients against corporate wrongdoers. Contact Us for a FREE CONSULTATION by calling 504-523-2434 or by filling out a Contact Form.
Wells Fargo may not have had adequate controls in place to ensure that mortgage insurance premium payments were properly administered. Wells Fargo also has a policy of requiring the borrower to initiate cancelation of monthly mortgage insurance payment cancellation, even though FHA and U.S. Department of Housing and Urban Development (HUD) policies and regulations provide that “MIP is automatically canceled” once the relevant criteria for the particular loan are satisfied.
As a result, Wells Fargo collected unnecessary mortgage insurance payments from its FHA borrowers—sometimes for years after the FHA had canceled the payment obligation. We believe that Wells Fargo has collected and continues to collect tens of thousands of dollars per month, or more, in mortgage insurance premiums payments that it is not authorized to collect.
Individuals who took out an FHA-backed residential mortgage with Wells Fargo and who believe they may have overpaid their mortgage insurance premium are encouraged to contact the attorneys at Peiffer Wolf Carr Kane & Conway for a FREE CONSULTATION by filling out a Contact Form on our website or by calling 504-523-2434 to schedule a FREE Case Evaluation. We can discuss your current circumstances and explore your potential legal options, and we may be able to help you fight for recovery of any losses and possibly secure additional compensation.