Notice to Counsel Pursuant to FED. R. CIV. P. 23(G) Regarding Kay Et Al. V. Wells Fargo & Company, No. C07-01351 WHA (N.D. Ca)

SAN FRANCISCO, Dec. 21 /PRNewswire/ -- The following release was issued today by the United States District Court, Northern District of California, San Francisco/Oakland Division:

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA SAN FRANCISCO/OAKLAND DIVISION Civil Action No. C07-01351 WHA CLASS ACTION NOTICE TO COUNSEL PURSUANT TO FED. R. CIV. P. 23(G) ANDREA KAY, individually and on behalf of all others similarly situated, Plaintiff, v.

WELLS FARGO & COMPANY , WELLS FARGO BANK, N.A., NORTH STAR MORTGAGE GUARANTY REINSURANCE COMPANY,

Defendants. TO THE ATTORNEYS AND LAW FIRMS RECEIVING THIS NOTICE:

The above-captioned case is a certified class action in which plaintiff Andrea Kay ("Plaintiff") alleges, both individually and on behalf of others similarly situated, that Defendants Wells Fargo & Company ("Wells Fargo"), Wells Fargo Bank, N.A. ("WFB") and North Star Mortgage Guaranty Reinsurance Company ("North Star") violated Section 8 of the Real Estate Settlement Procedures Act ("RESPA"), 12 U.S.C. section 2607, by paying or receiving kickbacks, unearned fees or other prohibited payments in connection with captive reinsurance arrangements with certain residential private mortgage insurers.

Specifically, Plaintiff alleges, inter alia, that Wells Fargo and WFB referred residential loan customers who were required to purchase private mortgage insurance ("PMI") to PMI providers that had entered into reinsurance agreements for such referred PMI insurance with North Star, an affiliated business or "captive" of Wells Fargo and/or WFB. Plaintiff essentially alleges that these reinsurance agreements involved insufficient, if any, transfer of risk of loss and therefore violated the anti-kickback and prohibited payment/fee sharing provisions of Section 8 of RESPA.

The Defendants have denied all of the allegations and contend the agreements are appropriate and standard reinsurance involving meaningful risk transfer. The Defendants intend to continue vigorously defending the claims.

Plaintiff moved for certification of a class of all borrowers who obtained mortgage loans through WFB who paid for private mortgage insurance which was reinsured by WFB affiliate North Star from 1999 to the present. On November 30, 2007, the Court issued an Order:

(1) Granting Plaintiff's motion for certification for certification of a class defined as follows:

All homeowners who obtained residential mortgage loans through Wells Fargo Bank, N.A. that closed from March 7, 2006 through and including December 31, 2007, and who paid for private mortgage insurance subject to reinsurance through North Star Mortgage Guaranty Reinsurance Company, but not including those borrowers whose loans Wells Fargo Bank, N.A. acquired from third-party lenders ("Class Members").

-and- (2) Directing Plaintiff's counsel to:

... publicize notice calculated to invite other counsel to compete for class representation in this case pursuant to [Fed.R.Civ.P.] Rule 23(g). Plaintiffs' counsel may also apply. All applicants must be prepared to meet the existing deadlines.

Copies of all filed documents, including the Court's November 30, 2007 Order and June 14, 2007 Case Management Order, are available through PACER. Any counsel wishing to compete for class representation in this case are invited to file an application with the Court, pursuant to Rule 23(g), on or before January 10, 2008.

In addition to explicit agreement to meeting all current Court deadlines, applications for Class Counsel should include:

-- Applicant's firm resume, including all relevant contact information; -- A listing of any relevant experience including, but not limited to, class actions brought pursuant to RESPA where counsel was named (or effective) lead or co-lead counsel. This list should be detailed, including case name and number, a short description of the action and case outcome and the attorney(s) who worked on those cases; -- An express commitment regarding applicant's willingness and ability to commit the necessary expertise and resources to the full prosecution of the Class' claims, through trial if necessary, and -- An express commitment to maintain current time records throughout the action as well as advance any reasonable expenses of Plaintiff and the Class.

Finally, the Court invites applicants to provide any other information they believe would be relevant and useful to the Court's Class Counsel evaluation process.

By Order of the Honorable William H. Alsup United States District Judge CONTACT: Tiffany Melvin, Tel: +1-888-299-7706.