Wells Fargo & Co. has agreed to negotiate a settlement in a case alleging it made loan modifications on a bankrupt borrower’s mortgage that vastly increased the costs.

The class action was filed in June by a North Carolina couple who claim that while they were in Chapter 13 bankruptcy, the bank made "illegal stealth modifications."

The modifications allegedly caused the Chapter 13 trustee in the case to pay less than originally required, resulting in defaults that were not the borrowers’ fault.

Source: Mortgage Daily