Wells Fargo, Fannie Mae Dodge Suit Over Reverse Mortgages

Law360, Chicago (January 6, 2014, 9:38 PM EST) -- A California federal judge on Friday tossed a proposed class action accusing Wells Fargo Bank NA and Fannie Mae of wrongly refusing heirs and surviving spouses of reverse mortgage borrowers the opportunity to buy property at its appraised value.

U.S. District Judge Samuel Conti issued an order dismissing the suit brought by the AARP on behalf of Robert Chandler, finding that the deed attached to Chandler’s deceased mother’s reverse mortgage — or “home equity conversion mortgage” — didn’t back his claims.

“The court finds that the...
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