(Repeats story sent earlier with no changes to text)
By Nate Raymond
NEW YORK, Dec 8 (Reuters) - Wells Fargo & Co, thelargest U.S. mortgage lender, is set to go to trial on Monday ashomeowners seek to recoup about $629 million for allegedovercharges by a company once owned by Wachovia Corp.
Jury selection is scheduled to begin in federal court inManhattan in a long-running class-action lawsuit concerningHomEq Servicing, a subprime mortgage servicer.
The lawsuit was filed in 2001 on behalf of borrowers whosemortgages were owned or serviced by HomEq or the lender whoseloans it was established to manage, Money Store.
Wachovia in 2006 sold HomEq to Barclays Plc, whichin turn in 2010 sold the mortgage servicing business to OcwenFinancial Corp.
Wells Fargo bought Wachovia at the end of 2008 and thusnever owned HomEq, but a spokesman confirmed it remained liablefor some claims raised in the lawsuit. Ocwen in a statement saidit did not have similar liability. Barclays declined tocomment.
The lawsuit filed by Joseph Mazzei, a California resident,contends that HomEq kept charging borrowers monthly late feeseven after their mortgages went into default, making the fullamounts owed immediately due.
It also said HomEq violated its contracts by chargingattorneys' fees in foreclosure and bankruptcy and splitting themwith a nonlawyer, specifically a unit of Fidelity NationalInformation Services Inc. Sharing fees in this manner isillegal throughout the country, the lawsuit said.
In an October court filing, a damages expert for theplaintiffs estimated damages at $59.3 million for late fees and$282.7 million for attorneys' fees, plus pre-judgment interestof $287.4 million.
"We strongly disagree with and dispute the plaintiff'sclaims and legal arguments, which relate to acts that occurredat a legacy company more than a decade ago, and are prepared topresent our case in court." Wells Fargo spokesman Tom Goydasaid.
Moshe Horn, a lawyer for the plaintiffs at Seeger Weiss,declined to comment.
The case is Mazzei v. The Money Store, U.S. District Court,Southern District of New York, No. 01-5694. (Reporting by Nate Raymond in New York; Editing by JonathanOatis)