Corvello v. Wells Fargo Bank N.A., No. 11-16234 (9th Cir. 2013)
Annotate this CaseThis case concerned the Home Affordable Modification Program (HAMP), a government program created to help distressed homeowners with delinquent mortgages. At issue was whether Wells Fargo was contractually required to offer plaintiffs a permanent mortgage modification after they complied with the requirements of a trial period plan (TPP). Following the Seventh Circuit, the court held that Wells Fargo was required to offer the modification. The district court should not have dismissed plaintiffs' complaints when the record showed that Wells Fargo had accepted and retained the payments demanded by the TPP, but neither offered a permanent modification, nor notified plaintiffs they were not entitled to one, as required by the terms of the TPP. Accordingly, the court reversed and remanded.
Court Description: Home Affordable Modification Program. The panel reversed the district court’s dismissals of diversity actions challenging the decision of Wells Fargo Bank not to offer permanent mortgage modifications to plaintiff borrowers. The panel held that under the Home Affordable Modification Program the bank was contractually required to offer the plaintiffs a permanent mortgage modification after they complied with the requirements of a trial period plan (“TPP”). The panel held that the district court should not have dismissed the plaintiffs’ complaints when the record before it showed that the bank had accepted and retained the payments demanded by the TPP, but neither offered a permanent modification, nor notified plaintiffs they were not entitled to one, as required by the terms of the TPP. Judge Noonan concurred in the judgment.
The court issued a subsequent related opinion or order on September 23, 2013.
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