Wigod v. Wells Fargo Bank, N.A.

Lori Wigod (plaintiff) obtained a loan from Wells Fargo Bank, N.A. (defendant). Wigod sought to modify the terms of the loan under the federal Home Affordable Mortgage Program (HAMP), which was part of the Emergency Economic Stabilization Act of 2008. Wigod was eligible for HAMP and Wells Fargo granted Wigod a trial period loan modification, which was standard under HAMP. Wigod made all required payments and complied with all HAMP terms during the trial period, but Wells Fargo declined to provide her with a permanent loan modification after the trial period ended. Wells Fargo claimed that upon reevaluation of Wigod’s eligibility, Wigod was not eligible for a permanent loan modification under HAMP. Wigod claimed Wells Fargo’s second eligibility determination was never disclosed to her and was based on an incorrect calculation of her property taxes. Wigod brought a class action suit in the United States District Court for the Northern District of Illinois. Wigod asserted several state law claims, including (1) breach of contract, on the ground that Wells Fargo promised to provide Wigod a permanent modification if she made timely payments during the trial period and her eligibility disclosures remained true; (2) promissory estoppel, on the ground that Wigod relied on the promised modification under HAMP and thus forwent other opportunities to obtain relief from her loan; (3) negligent hiring and supervision of Wells Fargo’s customer service representatives; (4) fraudulent misrepresentation; (5) fraudulent concealment of the fact that Wells Fargo would reevaluate Wigod’s eligibility; (6) negligent misrepresentation and concealment; and (7) Illinois’s Consumer Fraud and Deceptive Business Practices Act (ICFA). The district court dismissed Wigod’s complaint in full for failure to state a claim upon which relief can be granted, on the ground that HAMP and its enabling statute did not provide borrowers a private right of action to enforce HAMP. Wigod appealed.