ISSUED BY: GCIS Communications Command Center
SOURCE: Air Force Times
22February2011 12:57pmEST
GCIS INTELLIGENCE UPDATE: Nearly 60,000 service members and veterans who have refinanced their Veterans Affairs Department mortgage loans through Wells Fargo, Wachovia and SouthTrust will receive refunds as the result of a $10 million settlement in a class-action lawsuit, a Wells Fargo official said.
Those who may be eligible refinanced their loans between Jan. 20, 2004, and Oct. 7, 2010, said Wells Fargo spokeswoman Vickee Adams. On average, the refunds are expected to be about $175, she said; the amount will vary with each loan.
The settlement was reached as the result of a suit filed in Georgia alleging that Wells Fargo improperly rolled attorneys’ fees into expenses charged to veterans for things like title searches. Under VA rules, the lender must cover any costs for attorneys’ services other than for title work, and cannot bill the borrower for these charges.
In about a month, Wells Fargo will mail letters to each eligible service member and veteran who has participated in the refinancing program, Adams said. The letter will include information about how to apply for the refund, and where to go for more information. (read full report)
