Wells Fargo Executives Embarrassed by Employee Incompetence?

Poor Wells Fargo. It must be really distressing to CEO John Stumpf that his mortgage division is being called on the carpet yet again.

Big Banks’ Mortgage Units — Still Failing Customers — Face New Restrictions
On Wednesday, the OCC announced that six banks that manage home loans — EverBank, HSBC, JPMorgan Chase, Santander Bank, U.S. Bank and Wells Fargo — haven’t implemented all the reforms they promised to make as part of the 2011 deals.

As punishment, the regulator has imposed new restrictions on the banks’ mortgage departments, limiting their ability to acquire residential servicing rights in some circumstances, and forcing them to seek OCC approval before hiring senior officers in their mortgage servicing and compliance departments.

The restrictions vary, with Wells Fargo and HSBC strictly prohibited from certain types of new business acquisition, while the other banks must first seek OCC approval.

Let’s face it, things must be very obviously bad if the Office of the Comptroller of the Currency has finally taken its head out of the sand and noticed something was wrong with the way Wells and the other big financial institutions deal with consumer requests for mortgage loan modifications in the wake of a past “enforcement action” and a so-called punitive settlement that set servicing guidelines for the banks.

One of the many issues cited when the OCC sanctioned Wells and others last week was the ongoing inability of the bank to assign each loan mod review to a single, knowledgeable employee tasked with, among other things, keeping the consumer informed throughout the process.

Wells Fargo, the OCC said in a new consent order, “continues to engage in unsafe and unsound practices.” Among the bank’s points of “noncompliance,” the regulator said in regulator-speak, is its failure to ensure “effective communication with borrowers, both oral and written.”

According to the OCC, Wells Fargo still has yet to ensure that each borrower is matched with a single customer service representative at the bank to handle their modification request or foreclosure — a basic first step to ending the cycle of confusion, lost paperwork and endless hours on the phone that many homeowners have endured while speaking with a succession of uninformed bank employees.

Mike Heid, the president of Wells Fargo Home Mortgage, said in a statement that the bank has “implemented significant changes to our mortgage servicing operations and achieved compliance with major elements of the original Consent Order.”

I would imagine Stumpf and Heid must just be beside themselves with shame and distress because none of the many hundreds of company executives is intelligent enough to set up a system to assign cases to the employees trained and empowered to manage them. You’d think the nation’s largest mortgage bank and second-largest mortgage servicer could afford to hire somebody to help with that.

How embarrassing for Heid and other WFHM executives who have been telling no less an auspicious audience than the U.S. Congress since April 2010 that the company is diligently working on creating what has become known as a “single point of contact” system. How distressing that the no-doubt earnest testimony of those well-paid men was made into lies by the base incompetence of those idiot employees who, after years and years of being paid salaries still can’t manage to create a database and develop a protocol for working with consumers.

More than five years later, they have to hang their heads in shame that they can’t manage to do what countless private and government organizations do every day – assign clients, patients, students, etc., to a contact person they can count on to help them through a bureaucratic process.

Back when I worked in a tiny academic advising office at a small university, we somehow managed to create and administer a system that could divvy up the students among trained advisors, maintain an electronic database to record  every communication we had with those students, and track their academic progress and choice of major. Little did I know back then that we lowly functionaries were geniuses compared to the high-dollar executives at the nation’s fourth-largest bank.

While I was trying to work with Wells Fargo to restructure my loan, I experienced the terrible incompetence of its system firsthand. Over two and a half years, I was assigned no fewer than 17 people who were supposed to help get my case reviewed. Oddly enough, most of them weren’t very helpful at all. Some of them even seemed to completely lack such basic skills as how to read a bank statement, how to add simple numbers and how to return phone calls.

One wonders how the very same company has managed to keep the paperwork straight and organize all the steps required to facilitate the hundreds of thousands of foreclosures it has committed over the past few years. Of course, we now know there was a special manual created to help Wells Fargo employees fabricate the reams of documents necessary to achieve this profitable outcome.

Perhaps Stumpf and Heid could hire the same people who wrote the Foreclosure Manual to create a Loan Mod Manual. Wouldn’t that be helpful? I wonder why none of their expensive executives thought of that?

12 thoughts on “Wells Fargo Executives Embarrassed by Employee Incompetence?

  1. I did it for two years with wells fargo and was baited to stop making my house payment so I could qualify for the modification. I was told to “ignore automatically generated letters”, even if it looked like he signed it. Suddenly he stopped returning my calls and I fortunately recorded my conversations (not that anyone has bothered to listen to them). I had to file bankruptcy to stop the sale of my house right out from under me due to their fraudulent activities.

    • Im in the same boat as we speak i was diagnostic with camcer at 28 been in my homen8 year snever missed a payment did a firbearance thought it would help oh was i wrong now on 3 months of platong the lost paper work game i get a letter tht hud is saling my hoise may 25 my alicia bistos loam bitch keeps hamging up on me i hope they kmow thisntexas gal is not leavibg my hone goibg fac thesenpapers for the 14 time amd still the can deny me needless to say they send someone to break in here and they will die here and i wont surrwnder this home ill burn it to the groud asshole whay do i do now

  2. I’ve been in WF hell for 3 years. My “Home Preservation Specialist” was incompetent and uninformed about modification programs, rules, procedures and laws. I knew more than she did (WF should have been paying me her salary). At the end of 2014, my “point of contact” was no longer with the company. Over the first few months this year, my poc changed four times. Right now, I’m in foreclosure, bankruptcy and, once again, have a “single point of contact” who is not returning calls from me or my attorney.

  3. I don’t know if anybody read these but I’ve been fighting with Wells Fargo on and off for a year and a half I got my loan modified in January my income still do not go back up which I told them at the beginning I did not know how my income was going to be. I’m behind again and they won’t even talk to me some tell me just to sell my house after being a month behind my modification officer won’t return my phone calls I’m stuck between a rock and a hard place and I don’t know what to do. Isn’t there a hardship? Or somebody who is actually nice and civil and human freaking being that works at Wells Fargo? Oh and top it all off because I scratch the number to off of my check and replace it with the four they close my checking account for fraud.

  4. Hi Lowagirl,
    I read you details and feel sorry to hear that you have been suffering from the rude behave of Wells Fargo. You need to talk to them in their way. Your should consult an experienced consultant who have been dealing with them for long time. I hope it would help you!


  5. John Stumpf ceo of scam fargo should use his 70+ million dollars worth of scam fargo stock to pay back the ones this fraudulent lying scaming pos bank stole from us, of course it would only pay back
    a small percentage of what they stole or cost all us.

  6. “Hiring off the street” is the kindest thing I can say about my “new” single point of contact who finally called me back a few weeks ago after my attorney contacted them FIVE times with permission to speak to me (I’m in the middle of bankruptcy, foreclosure suspended and no sale date). I’m back in HAMP, although last week I learned it escalated to HAMP 2 review (not as good as it sounds).

    You know you will have problems from the beginning if the extension number for your “home preservation” contact is longer than five digits AND if your rep discloses that they have never had a mortgage so they can’t help you figure out how to upload documents, which I already knew how to do, but still … WTF

    • Wanted to update: I was denied HAMP, but approved for Streamlined Modification. 3-month trial period, payments are $200 lower than original loan, 480 months @ 4.26%. Oh, My, God. So, if I accept this modification I’ll tack on 40 years to a mortgage I’m 15 years into already. That’s 55 years of mortgage payments.

      I’m 58 years old. I’ll be dead before it’s paid off. Suck on that, WF.

      I truly believe WF does not want me to accept this offer, which is why the mysterious “investors” made the terms so terrible. I’ve dealt heavily with WF for so long and brought other people, organizations, and government into my battle, I know my name is red-flagged.

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