The new allegation stated that Wells Fargo didn't make good on their mortgage reductions loans. These loans were acquired from Wachovia Bank in 2009 when they collapsed. However, thousands of homeowners loans were denied their loan modifications and these homeowners should have been approved by Wells Fargo. Again, Wells Fargo didn't disclose to homeowners that the mortgage rates would increase if they chose the lowest rate. Thousands of homeowners have ended up with negative amortization from choosing the lowest payment plan.
The law suit accuses Wells Fargo of breaching the settlement and violating the state competition law.Wells Fargo stated that they will defend the new lawsuit and they haven't violated any breach of settlement.
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