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July 26, 2014

Wells Fargo Sends Refund Checks to Eligible Borrowers

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Wells Fargo Sends Refund Checks to Eligible Borrowers

Thousands of home owners with Wells Fargo mortgages received a sweet surprise in the mail recently: Refund checks of between $2,000 to $5,000.

Some Wells Fargo borrowers with Federal Housing Administration-backed loans received the refund checks because they had previously paid unnecessary mortgage-insurance related fees. 

Once home owners cash the refund checks, they stand to give up their right to sue Wells Fargo on the grounds that they were placed into FHA-backed mortgages unfairly, HousingWire reports.

“During the course of our own internal review, we identified a small group of borrowers who had received FHA loans between 2009 and 2011 who may have qualified for conventional financing under circumstances where such financing could have been a preferred option,” Wells Fargo told HousingWire.

FHA loans, which often come with pricier fees and insurance, are usually offered to borrowers who may not be able to make a 20 percent down payment. 

Source: “Wells Fargo Mails Checks to Thousands with FHA-Backed Mortgages,” HousingWire (Oct. 30, 2012)

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