8th Circ. Scraps Homeowners' Wells Fargo Fraud Suit

Law360, New York (January 15, 2013, 6:03 PM EST) -- The Eighth Circuit on Tuesday upheld a lower court's dismissal of a Missouri couple's suit claiming Wells Fargo Home Mortgage Inc. misled them into believing their loan would be modified under the federal Home Affordable Modification Program, saying they hadn't sufficiently alleged any fraudulent misrepresentation.

Christopher and Diane Freitas stopped paying their mortgage loan after receiving conflicting information from Wells Fargo employees that their loan would be modified under HAMP, according to the opinion. The bank then initiated foreclosure, prompting the couple to sue for fraudulent...
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