Court Denies Wells Fargo’s Motion to Dismiss

On September 7, 2012, the court denied Wells Fargo’s motion to dismiss the lawsuit, and ruled that plaintiff Desiree Morris stated valid claims against Wells Fargo for violation of the Truth-In-Lending Act, breach of contract, and unjust enrichment.  Consistent with other courts, the court held that these claims were supported by Plaintiff’s allegations that (1) Wells Fargo unlawfully required borrowers to obtain excessive amounts of flood insurance for their property; and (2) Wells Fargo accepted unlawful kickbacks and commissions in connection with force-placed (also known as lender-placed) flood insurance.