WELLS FINED 85MIL FOR MORTGAGE ABUSES
WOW, I'M A MORTGAGE BROKER AND IT FEELS SOOOOO GOOD TO READ A HEADLINE AND ARTICLE LIKE THIS. This article was written on CBS Marketwatch (by Gregg Robb). In Part this article says:
The Fed fined Wells for allegedly steering borrowers into high-cost subprime mortgage loans even though they qualified for safer loans. Fed said employees at a subsidiary of Wells Fargo falsified information about borrowers' incomes to make it appear they qualified for loans. The order requires Wells Fargo to compensate borrowers affected by these practices. The bank also agreed to improve the oversight of its home mortgage loan business.
I can speak for a lot of mortgage brokers when I say after months of the Feds doling out punishment that overwhelming affect brokers I'm glad to see the focus on a bank for a change. The federal reserve has changed a lot of guidelines. It is not clear that any of the changes have done anything except increase costs and limit options for the consumer.
I've been amazed for months now that when I speak with consumers they seem to understand what caused the housing collapse. This is one step toward doing the right thing. My hope is that there will be more moves like this.
