Wells Fargo Beats Class Action Over Boosted Mortgage Rates

Law360, New York (October 4, 2012, 2:00 PM EDT) -- Wells Fargo NA had no contractual obligation to shield homeowners from higher payments by tying adjustable mortgage rates to a more affordable benchmark, a California federal judge ruled Wednesday in wiping out a proposed class action against the lender.

U.S. District Judge Charles R. Breyer’s decision rejected an argument from borrowers Charles and Gina Haggarty that the bank was required to abandon a cost index that spiked dramatically in 2009, saying the couple’s loan left the bank sole discretion to decide if such action was warranted....
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