It should come as no surprise that one of our country's largest mortgage loan servicers, Wells Fargo, misapplies payments, resulting in an incorrect amortization of mortgage loans.
Unfortunately for many of us, we don't have the resources, stamina or understanding of the amortization process to catch them.
But Mr. Jones did. In fact, he had all of the above - resources (he spent nearly $300k in attorney's fees), stamina (he spent more than 5 years in litigation) and understanding (he caught them in misapplication of fees on numerous occassions throughout his case).
And as a result, he was awarded more than $3 million in punitive damages!!
You have to read this opinion from the 5th Circuit Court of Appeals in Louisiana. It's actually quite amusing. This judge all but asks Wells F^&*go to bend over and drop their drawers while she paddles them with the biggest, hardest board she can find!
For those of us who are involved in litigation with Wells F&*^go, what should we take from this? Insist on getting an accounting of all fees and how they are being applied, including all fees since you have gone into foreclosure. You should do this during discovery. Get a court order demanding they produce discovery if you have to. Then, if you have to, get a forensic accounting of the records. Use this case to help back up your case.
Stick it to em! It can be done as Mr. Jones has proven in his case!