Hagens Berman Files Class Action Against Wells Fargo and Rels Valuation
by http://realestateappraisertips.info/ on February 2, 2009
Hagens Berman Files Class Action Against Wells Fargo and Rels Valuation
By: PR Newswire
Feb. 2, 2009 06:15 PM
Homeowners claim companies duped consumers with grossly inflated charges.
PHOENIX, Feb. 2 /PRNewswire/ — Two homeowners in Phoenix recently filed a lawsuit against Wells Fargo (NYSE: WFC) and its appraisal subsidiary Rels Valuation, claiming the mortgage giant illegally rigged the appraisal process and referred appraisal business to its subsidiary in a scheme to boost profits at the expense of homeowners.
The lawsuit, filed under the Racketeering Influenced and Corrupt Practices Act (RICO), the Real Estate Settlement Procedures Act (RESPA) and state law, claims that Wells Fargo requires homeowners to use Rels Valuation for appraisals. In return, Rels Valuation gives Wells Fargo visibility into and control over the appraisal process.
The suit claims Rels Valuation subcontracts the work to independent appraisers, demanding large price concessions then charges homeowners more than double the actual cost of the appraisal.
Tapping the market power from the thousands of loans made by Wells Fargo, the suit alleges Rels Valuation requires appraisers to agree to a fee well below market, but it does not pass any savings along to consumers. Instead, borrowers receive an inflated bill from Rels Valuation with no disclosure to the homeowner that the bulk of the fee is simply a markup – a fee for no services rendered, the suit claims.
The lawsuit, filed in U.S. District Court in Phoenix, seeks to represent all homeowners who purchased or refinanced their home through Wells Fargo and Rels Valuation, and asks the court to award plaintiffs damages.
“We believe Wells Fargo and Rels Valuation are operating this scheme on a national level,” said Rob Carey, partner at Hagens Berman Sobol Shapiro. “With home lending operations across the country, tens if not hundreds of thousands of homeowners may be affected.”
The lawsuit alleges defendants netted more than one hundred million dollars in phony and unearned fees through the appraisal fee scheme.
The lawsuit claims the practices may affect upwards of hundreds of thousands of home loan customers. Multiply that by an inflated fee of $200 per transaction and over the course of a year Wells Fargo sees an additional $20 million or more for no work completed, the lawsuit alleges.
“Homeowners are feeling the crunch of the housing market nationwide and inflated charging schemes put homeowners at a huge disadvantage with the sole intention of inflating profits for the banks and lenders,” said Carey. “Not only is it illegal, but it’s unethical to prey on customers through the foggy channels and requirements within the home loan process.”
The plaintiffs, Grant and Lanie Gomez of Arizona, refinanced their home in March 2007. Wells Fargo required them to use Rels Valuation for their home appraisal. In the company’s good faith estimate, Wells Fargo disclosed its relationship with Rels Valuation and estimated appraisal charges would range from $50 to $650.
The complaint states the Gomez’s received an appraisal fee of $495 from Rels Valuation. The suit alleges Rels Valuation does not appraise properties and instead hired a third party to complete the work for $200 or less.
Rels Valuation only hires appraisers who accept $250 or less on an appraisal, the suit alleges, they then submit a bill to Wells Fargo for an amount that exceeds $350.
The lawsuit cites violations of federal law under RICO and RESPA. Other counts include unjust enrichment, breach of fiduciary duty and violation of California unfair competition law.
You can learn more about this case by visiting www.hbsslaw.com/WFCappraisals. If you’re a Wells Fargo home loan customer, you can also contact attorneys at wfc@hbsslaw.com.
About Hagens Berman Sobol Shapiro
Hagens Berman Sobol Shapiro is based in Seattle with offices in Chicago, Boston, Los Angeles, Phoenix, San Francisco and New York. Since the firm’s founding in 1993, it has developed a nationally recognized practice in class action and complex litigation. Among recent successes, HBSS has negotiated a pending $300 million settlement as lead counsel in the DRAM memory antitrust litigation; a $340 million recovery on behalf of Enron employees which is awaiting distribution; a $150 million settlement involving charges of illegally inflated charges for the drug Lupron, and served as co-counsel on the Visa/Mastercard litigation which resulted in a $3 billion settlement, the largest anti-trust settlement to date. HBSS also served as counsel in a $850 million settlement in the Washington Public Power Supply litigation and represented Washington and 12 other states in lawsuits against the tobacco industry that resulted in the largest settlement in the history of litigation. For a complete listing of HBSS cases, visit www.hbsslaw.com.
CONTACTS:
Rob Carey (602) 840-5900
Hagens Berman Sobol Shapiro
Rob@hbsslaw.com
Mark Firmani (206) 443-9357
Firmani + Associates Inc.
Mark@firmani.com
SOURCE Hagens Berman Sobol Shapiro
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Hagens Berman Files Class Action Against Wells Fargo and Rels Valuation
by http://realestateappraisertips.info/ on February 2, 2009
Hagens Berman Files Class Action Against Wells Fargo and Rels Valuation
By: PR Newswire
Feb. 2, 2009 06:15 PM
Homeowners claim companies duped consumers with grossly inflated charges.
PHOENIX, Feb. 2 /PRNewswire/ — Two homeowners in Phoenix recently filed a lawsuit against Wells Fargo (NYSE: WFC) and its appraisal subsidiary Rels Valuation, claiming the mortgage giant illegally rigged the appraisal process and referred appraisal business to its subsidiary in a scheme to boost profits at the expense of homeowners.
(Logo: http://www.newscom.com/cgi-bin/prnh/20080317/AQM144LOGO)
The lawsuit, filed under the Racketeering Influenced and Corrupt Practices Act (RICO), the Real Estate Settlement Procedures Act (RESPA) and state law, claims that Wells Fargo requires homeowners to use Rels Valuation for appraisals. In return, Rels Valuation gives Wells Fargo visibility into and control over the appraisal process.
The suit claims Rels Valuation subcontracts the work to independent appraisers, demanding large price concessions then charges homeowners more than double the actual cost of the appraisal.
Tapping the market power from the thousands of loans made by Wells Fargo, the suit alleges Rels Valuation requires appraisers to agree to a fee well below market, but it does not pass any savings along to consumers. Instead, borrowers receive an inflated bill from Rels Valuation with no disclosure to the homeowner that the bulk of the fee is simply a markup – a fee for no services rendered, the suit claims.
The lawsuit, filed in U.S. District Court in Phoenix, seeks to represent all homeowners who purchased or refinanced their home through Wells Fargo and Rels Valuation, and asks the court to award plaintiffs damages.
“We believe Wells Fargo and Rels Valuation are operating this scheme on a national level,” said Rob Carey, partner at Hagens Berman Sobol Shapiro. “With home lending operations across the country, tens if not hundreds of thousands of homeowners may be affected.”
The lawsuit alleges defendants netted more than one hundred million dollars in phony and unearned fees through the appraisal fee scheme.
The lawsuit claims the practices may affect upwards of hundreds of thousands of home loan customers. Multiply that by an inflated fee of $200 per transaction and over the course of a year Wells Fargo sees an additional $20 million or more for no work completed, the lawsuit alleges.
“Homeowners are feeling the crunch of the housing market nationwide and inflated charging schemes put homeowners at a huge disadvantage with the sole intention of inflating profits for the banks and lenders,” said Carey. “Not only is it illegal, but it’s unethical to prey on customers through the foggy channels and requirements within the home loan process.”
The plaintiffs, Grant and Lanie Gomez of Arizona, refinanced their home in March 2007. Wells Fargo required them to use Rels Valuation for their home appraisal. In the company’s good faith estimate, Wells Fargo disclosed its relationship with Rels Valuation and estimated appraisal charges would range from $50 to $650.
The complaint states the Gomez’s received an appraisal fee of $495 from Rels Valuation. The suit alleges Rels Valuation does not appraise properties and instead hired a third party to complete the work for $200 or less.
Rels Valuation only hires appraisers who accept $250 or less on an appraisal, the suit alleges, they then submit a bill to Wells Fargo for an amount that exceeds $350.
The lawsuit cites violations of federal law under RICO and RESPA. Other counts include unjust enrichment, breach of fiduciary duty and violation of California unfair competition law.
You can learn more about this case by visiting www.hbsslaw.com/WFCappraisals. If you’re a Wells Fargo home loan customer, you can also contact attorneys at wfc@hbsslaw.com.
About Hagens Berman Sobol Shapiro
Hagens Berman Sobol Shapiro is based in Seattle with offices in Chicago, Boston, Los Angeles, Phoenix, San Francisco and New York. Since the firm’s founding in 1993, it has developed a nationally recognized practice in class action and complex litigation. Among recent successes, HBSS has negotiated a pending $300 million settlement as lead counsel in the DRAM memory antitrust litigation; a $340 million recovery on behalf of Enron employees which is awaiting distribution; a $150 million settlement involving charges of illegally inflated charges for the drug Lupron, and served as co-counsel on the Visa/Mastercard litigation which resulted in a $3 billion settlement, the largest anti-trust settlement to date. HBSS also served as counsel in a $850 million settlement in the Washington Public Power Supply litigation and represented Washington and 12 other states in lawsuits against the tobacco industry that resulted in the largest settlement in the history of litigation. For a complete listing of HBSS cases, visit www.hbsslaw.com.
CONTACTS:Rob Carey (602) 840-5900Hagens Berman Sobol ShapiroRob@hbsslaw.comMark Firmani (206) 443-9357Firmani + Associates Inc.Mark@firmani.comSOURCE Hagens Berman Sobol Shapiro
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