Wells Fargo Deal Paying $12 Million for Mortgage Errors Approved

Wells Fargo agreed to pay $12 million to more than 1,800 mortgage borrowers to resolve litigation alleging a calculation error in the bank’s software wrongly assessed their eligibility for loan modifications, according to a settlement agreement approved by an Ohio federal court.

The deal will provide $9.1 million to class members with the remainder going to pay attorneys’ fees and costs, the U.S. District Court for the Southern District of Ohio said Tuesday. Each class member will receive between $1,000 to $19,000 under the deal granted final approval.

The plaintiffs alleged that Wells Fargo erroneously denied loan modifications to about ...