Wells Fargo Dodges Foreclosure Sanction In NY Appeals Court

Law360, New York (May 2, 2013, 2:35 PM EDT) -- A New York state appeals court on Wednesday overturned a lower court ruling that would have forced Wells Fargo & Co. to modify a mortgage over its finding that the bank had not negotiated with borrowers in good faith, saying the sanction violated Wells Fargo's constitutional rights.

The Appellate Division, Second Department ruled that a state supreme court judge violated the U.S. Constitution's contract clause and Wells Fargo's due process rights by forcing it to accept the terms of a trial mortgage modification as a sanction...
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