Wells Fargo Refunds Legal Closing Costs To Military Homeowners

About 60,000 military service members and veterans who have refinanced their VA mortgage loans through Wells Fargo, Wachovia and SouthTrust (which are all merged into Wells Fargo) between Jan. 20, 2004, and Oct. 7, 2010, may be eligible for refunds of $175 per mortgage loan.

According to a Wells Fargo official, refunds are being issued to veterans from a $10 million settlement in a class-action lawsuit against Wells Fargo for unfair charges.

IMPROPER CHARGES TO VETERAN BORROWERS

The lawsuit, filed in January 2009, accused Wells Fargo of illegally charging veterans for details of attorneys' expenses, such as title searches.

Charging veterans for attorney expenses is a direct violation of VA lending rules, which stipulates the lender should not bill the veteran-borrower for attorney related charges.

HOW CAN I CASH IN ON MY REFUND?

In the spring of 2011, eligible military service members and veterans who participated in the home refinancing program will receive a letter by mail from Wells Fargo.

Receipt of the letter from Wells Fargo indicates your eligibility, and includes instructions on how to apply for the Wells Fargo refund.

WELLS FARGO RECOMMITS TO SERVING VETERANS

According to Cara Heiden, Co-President of Wells Fargo Home Mortgage division, Wells Fargo has been working with veteran customers to correct wrongly-charged fees and issue refunds in accordance with VA lending rules. Wells Fargo hopes to settle charges fairly and continue to serve veterans with VA mortgages in the future.

Wells Fargo has formally recommitted to working with the Department of Housing and Urban Development to coordinate loan closing documents with VA lending rules, and close any gaps in order to prevent future faulty VA mortgage charges or billing confusion.