9th Circuit HAMP Case: Corvello v. Wells Fargo



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.

Corvello v Wells Fargo (9th Cir Aug 8 2013)(Recognizes Claim of Breach of TPP and HAMP)



2 thoughts on “9th Circuit HAMP Case: Corvello v. Wells Fargo

  1. I have a question for Beth.

    Is the agreement mentioned in the opinion, the one that offers a modification but makes it depend solely on actions of the bank a part of the contract between the government and the banks, or is that something Wells came up with? The provisions were struck down by the court.

    Do other homeowners seeking modification face this same issue?

    That’s all pretty hokey, an agreement that is completely non binding. I would not have agreed to that.


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