Remedial Plan B
Remedial Plan B provides compensation to current and former borrowers who received more expensive nonprime WFF mortgages, that may have had higher interest rates than traditional prime rate mortgages, between January 1, 2006 and September 30, 2008 and who suffered economic harm as a result of being approved for more expensive mortgage loans than the loans for which they potentially qualified.
Borrowers who qualify under Remedial Plan B may receive compensation based on the difference in interest rate and related fees between the loan a borrower received and the less expensive loan for which a borrower could have been approved. This calculation will be done by Wells Fargo and a Federal Reserve-approved independent third party. The Consent Order
provides information regarding how the compensation will be calculated. The compensation may include a refund of a portion of the interest, points, lender fees, and penalties paid on the WFF mortgage loan. The Consent Order also has compensation provisions that will compensate eligible borrowers for a lower credit standing and for expenses incurred in foreclosure/short sale/deed in lieu of foreclosure that primarily resulted from the origination of the more expensive WFF mortgage.
If you believe you may have qualified for better mortgage terms than you received during the applicable period, you should contact Wells Fargo by calling 1-866-960-5981 for an eligibility determination. If you could NOT have qualified for a less expensive prime rate loan at the time you applied for the WFF loan (for example, low credit score, too much debt or insufficient equity in your home), you are not eligible under Remedial Plan B and will not receive compensation.
The review process
There is a review process that will be conducted by Wells Fargo and evaluated by a Federal Reserve-approved independent third party to determine eligibility for compensation. As part of the review, borrowers may be asked to provide information and/or documentation. The results of this review by Wells Fargo will then be reviewed by the Federal Reserve-approved independent third party which will verify that the results of this review by Wells Fargo conform to the Federal Reserve-approved plan. The entire review process is expected to take approximately 60 days from the date all completed forms and requested information/documentation are received by Wells Fargo. Borrowers eligible for additional compensation for credit standing harm and/or foreclosure/short sale/deed in lieu-related expenses will also have an opportunity to request a review for such additional compensation.
Wells Fargo will notify current and former borrowers who are eligible for compensation under Remedial Plan B by mail. To accept a compensation offer from Wells Fargo, the borrower must first sign and return an Acceptance of Compensation and Release Form. If you disagree with the decision made by Wells Fargo, there is an appeals process. There are no costs or fees assessed by Wells Fargo or the independent third party to conduct this appeal. Compensation provided to borrowers related to the Consent Order may be reportable to the Internal Revenue Service. If so, compensation information will be included on IRS Forms 1098 and/or 1099 at tax time.
Attention WFF Mississippi borrowers: Even if your loan is now owned and serviced by Wells Fargo Bank, N.A., you are still eligible to participate in this process.