Judge Tosses Wells Fargo Mortgage Rate Lock Class Action

Homeowners who allege that Wells Fargo & Co. charged improper fees to lock in mortgage rates saw their class complaint against the bank dismissed, but will have the chance to refile some of their claims.

U.S. District Judge Maxine M. Chesney of the Northern District of California on May 14 said that Victor Muniz and the other plaintiffs had not sufficiently alleged that Wells Fargo misled borrowers about fees that would be charged to hold mortgage rates in place if a home purchase was delayed because of problems caused on the bank’s end of the transaction.

The plaintiffs, who first ...