is our government embarrassed?
Posted by admin on December 16th, 2009
During a holiday gathering last evening, a gentleman from Ireland asked, “Isn’t the government embarrassed?” He was referring to the current mortgage nightmare America is facing. I ask that also.
My larger concern: Who manages the charters of these large lenders. Why aren’t they heavily fined . . . I know that’s being proposed now, but will it be carried out? Money from fines could then be used to actually modify loans. Why aren’t operating licenses suspended until they begin acting ethically?
The latest painful story excerpted from a loan workout site:
Are Wells Fargo, Wachovia, ASC and CEO John Stumpf
the Kings of the Predatory Servicing Sea?
Moe Bedard
“I just want to let the world know that Wells Fargo, Wachovia (who they now own) try to hide behind thier servicing arm, American Servicing Company (ASC). ASC is one the worst predatory mortgage servicers that I and thousands of homeowners have ever experienced. I feel it is to the point where their operations are on the verge of criminal.They screwed you coming and they will screw you going. First they charged you a bunch of questionable fees when you got your home loan and then quickly sold you on Wall Street . . . now that you need help, they are tacking on more fees.
Here is a real world example from an actual Wells Fargo representative of actual loan modification fees being charged by Wells Fargo to a homeowner that is down and out.
Thank you for your patience. To follow is the breakdown of your contribution amount $1,585.10:
10/22/08
Preliminary Title report – $125.00
Recording fee – $200.00
Funds in Suspense -($122.16)
(loan modification process)04/30/08
Title policy – $266.00
(foreclosure process)Statutory reg mail – $ 31.26
Attorney fee – $775.00
(set sale date 4/10/08)
*allowable by VA*WFHM acquired loan 12/1/06 from Washington Mutual: Below costs assessed prior to WFHM servicing the loan.
1/12/06
(foreclosure process)
Title cost – $185.00
9/21/05(modification process)
Title cost – $125.00
Total payment $1585.10Any questions feel free to contact me. Again, sorry for the delayed response!
Welcome to the mortgage servicing business where millions of homeowners need help and they are paying dearly for it. Some may pay $2,000 in “loan modification help” fees a pop. Now multiply that by gazillions of loans that need a loan modification and you have a very lucrative gazillion dollar business that will last you into 2010.
If this business wasn’t so damn profitable, John Stumpf and Wells would have never bought Wachovia along with their hideously toxic and decaying mortgage servicing portfolio. In other words, if gouging homeowners in foreclosure wasn’t a great way to make money, Wells would have never bought a company like Wachovia, right?
I am sure anyone out there in the loan workout business will testify to the fact that the day Wells took over Wachovia, loan modifications became almost non-existent. There were quite a few times they even claimed to have stopped performing them intermittently over the last 6 months.
I think investors and maybe our State Attorney Generals should take a look at this. These are all facts that I and I am sure thousands of housing counselors and loan modification companies can verify.
My recommendation: Blog! Here is a link to Wells Fargo Corporate Blog
Let them know how you feel about their sloppy business practices. Also let them know that you will steer everyone you can away from them. I’m positive that I have lost $3 million in business for Wells Fargo by diverting people elsewhere. That is just through personal conversations and has nothing to do with what this blog is doing. You do have a voice. You can fight back.
