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Wells Fargo Settles $56M Over COVID Mortgage Misreporting

2/20/2026

Summary

Story summary

Wells Fargo reached a $56.85 million settlement over misreporting mortgage accounts during the COVID-19 pandemic.
The lawsuit alleged Wells Fargo incorrectly labeled accounts as 'in forbearance' instead of 'current'.
A preliminary court approval was granted on January 9, 2026, with a final hearing set for April 17, 2026.
Only California borrowers who used a CARES Act forbearance after March 27, 2020 and had incorrect reporting will qualify for automatic payments.

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Story summary

Wells Fargo reached a $56.85 million settlement over misreporting mortgage accounts during the COVID-19 pandemic.
The lawsuit alleged Wells Fargo incorrectly labeled accounts as 'in forbearance' instead of 'current'.
A preliminary court approval was granted on January 9, 2026, with a final hearing set for April 17, 2026.
Only California borrowers who used a CARES Act forbearance after March 27, 2020 and had incorrect reporting will qualify for automatic payments.