Borrowers in the suit claim a subprime servicer, previously owned by the bank, kept charging monthly late fees even after their mortgages went into default.
The nation’s largest U.S. mortgage lender, Wells Fargo, is headed to trial today as homeowners seek to recoup about $629 million for alleged overcharges, according to Reuters.
The lawsuit was filed in 2001 on behalf of borrowers whose mortgages were owned or serviced by HomEq, a subprime servicer, or the lender whose loans it was established to manage, Money Store.
In 2006, Wachovia sold HomEq to Barclays, and in 2010, Barclays sold the mortgage servicing business to Ocwen Financial.
Wells Fargo purchased Wachovia at the end of 2008. However, a spokesman confirmed to Reuters the bank remained liable for some claims raised in the lawsuit. Ocwen in a statement said it did not have similar liability. Barclays declined to comment to the news outlet.
Borrowers in the suit claim HomEq kept charging monthly late fees even after their mortgages went into default, making the full amounts owed immediately due.
