Business & Investing
Sponsored by

How in the hell does Wells Fargo keep tripping over their own feet??

3,578 Views | 28 Replies | Last: 5 yr ago by handle234
IrishTxAggie
How long do you want to ignore this user?
AG
This is getting ridiculous!! It's time for a huge rinse with all of their senior management and executives. Destroying lives because of a computer glitch.

Computer glitch causes foreclosures

Quote:

Wells Fargo & Company WFC is facing yet another probe related to denying or not offering modifications in mortgage loans that about 625 customers were eligible to at the time. Of the impacted customers, homes of about 400 people were foreclosed by the company.

Per the bank's internal review, attorney fee-related "calculation error" caused by a mortgage underwriting tool is accountable for the mishap. Accounts that were undergoing foreclosure process in the period between April 2010 and October 2015 were majorly impacted.

In its quarter filing, Wells Fargo mentioned that it has kept aside $8 million as provisions to repay the affected customers.Also, the bank mentioned that an undisclosed government agency is currently investigating the manner in which Wells Fargo obtained certain federal low-income housing tax credits in connection with the financing of low income housing developments.
Diggity
How long do you want to ignore this user?
AG
sounds like this was all going on at the same time.
jpd301
How long do you want to ignore this user?
AG
Because nobody goes to jail.
jtmoney03
How long do you want to ignore this user?
AG
It really is insane when you think about it. On one hand, I want to say they may be the most corrupt bank of them all. On the other hand, I'm beginning to believe it was unimaginable and inconceivable incompetence at EVERY level of their organization. From the board, down to their line level employees dealing with customers on the phone. How did someone not catch this **** happening, if not in real time, shortly after? I worked in mortgage for 11 years on the servicing side (2004-2014). I can't imagine letting those homes go to foreclosure because of a systemic error like that!
GarlandAg2012
How long do you want to ignore this user?
AG
They're very effed up but the sad thing is they're not even the most highly fined bank:

https://www.marke****ch.com/story/banks-have-been-fined-a-staggering-243-billion-since-the-financial-crisis-2018-02-20

Everyone cheats and no one really gets punished. Government just fines/taxes it and is willing to look the other way essentially.
FancyKetchup14
How long do you want to ignore this user?
AG
I'm really close to switching banks...WF is a mess.
techno-ag
How long do you want to ignore this user?
AG
My Wells Fargo story. They bought a local bank I was a long time customer of. They retained the free checking. Then several years later they decided not to have free accounts anymore and started dinging me. Each month I'd call and explain it was a grandfathered account and have the charge reversed. They got very snippy about it so eventually I closed the account and moved to another local bank offering free checking. Then the non profit I worked with in town had trouble with them, and lost their old free account. So we moved that account. It all left a bad taste.

Came as no surprise when their scandals hit. If they treat the little guys bad, they'll treat the big guys bad, too.
TwoMarksHand
How long do you want to ignore this user?
AG
FancyKetchup14 said:

I'm really close to switching banks...WF is a mess.


Done did.
cheeky
How long do you want to ignore this user?
AG
Need to separate ALL of the banks and brokerages. But still, if you look at the body of work over the past decade, WFC is way below the magnificent bars of malfeasance committed by peers with roughly 1/8 to 1/2 the total fines depending upon the constituent.

WFC has the misfortune of being the last of the last big banks targeted and so it's getting more headlines due to a lack of media grabbing headlines in the space. Roughly 1 in every 8 American citizens are customers of WFC (age 0 to infinity) so 400 people being foreclosed on because they were delinquent in their mortgage payments and didn't receive additional extensions/accommodations of credit due to a computer glitch in the risk management software is hardly newsworthy. At the end of the day the loan agreements were legally enforced. As soon as you miss a payment, you're subject to foreclosure at any bank. In this case, we're talking about folks who were many, many months behind and even a year or more. The press didn't report that. Loan defaults affect ALL borrowers in capital markets, no different than costs due to things like insurance fraud or torts.

I'm on the investment side, but frankly sick and tired of dealing with the bad press on the "bank" side of the enterprise. I met with Tim Sloan, CEO, at a management meeting in Houston last week. I'm not sold on the new Board or him yet, but the new head of Wealth is a gent by the name of Jon Weiss and he is outstanding.

If you're fed up with the community bank, I don't blame you. I've dealt with their nonsense personally as a customer. But I can honestly say that it's a tremendous company doing a lot things right. I still use a second "local" bank for deposit accounts, for many reasons, and so should you.
GE
How long do you want to ignore this user?
AG
I've had my checking with them for years and been happy. Plentiful ATMs and branches and relatively easy transfers. Never had any issues but the other stuff is concerning
The Original AG 76
How long do you want to ignore this user?
AG
Stagecoach said:

Need to separate ALL of the banks and brokerages. But still, if you look at the body of work over the past decade, WFC is way below the magnificent bars of malfeasance committed by peers with roughly 1/8 to 1/2 the total fines depending upon the constituent.

WFC has the misfortune of being the last of the last big banks targeted and so it's getting more headlines due to a lack of media grabbing headlines in the space. Roughly 1 in every 8 American citizens are customers of WFC (age 0 to infinity) so 400 people being foreclosed on because they were delinquent in their mortgage payments and didn't receive additional extensions/accommodations of credit due to a computer glitch in the risk management software is hardly newsworthy. At the end of the day the loan agreements were legally enforced. As soon as you miss a payment, you're subject to foreclosure at any bank. In this case, we're talking about folks who were many, many months behind and even a year or more. The press didn't report that. Loan defaults affect ALL borrowers in capital markets, no different than costs due to things like insurance fraud or torts.

I'm on the investment side, but frankly sick and tired of dealing with the bad press on the "bank" side of the enterprise. I met with Tim Sloan, CEO, at a management meeting in Houston last week. I'm not sold on the new Board or him yet, but the new head of Wealth is a gent by the name of Jon Weiss and he is outstanding.

If you're fed up with the community bank, I don't blame you. I've dealt with their nonsense personally as a customer. But I can honestly say that it's a tremendous company doing a lot things right. I still use a second "local" bank for deposit accounts, for many reasons, and so should you.


Thanks for all the info.
Question sir... all I have ever used a bank for is just a place to put my cash from which I pay my bills , buy my groceries and gas and get my walking around money via an ATM.
I have to have a savings account and a card in order to get the free checking but don't really use them. Got a few hundred dollars in the so called savings and have never charged a dollar on the card in 15 years. I use Chase simply cause they have a slew of atm nearby.
You said " for many reasons" use a local bank for deposit accounts. Coming from a big bank guy I am curious WHY ? Are there any benefits or reasons why I should use a local " community " bank vs Chase or WF ?
Thanks
cheeky
How long do you want to ignore this user?
AG
I'm referring to additional deposit accounts. More FDIC, access to funds when bank "a" servers crash, "local" people, smaller banks often pay higher deposit interest. I could keep going.
DadAG10
How long do you want to ignore this user?
The Original AG 76
How long do you want to ignore this user?
AG
Stagecoach said:

I'm referring to additional deposit accounts. More FDIC, access to funds when bank "a" servers crash, "local" people, smaller banks often pay higher deposit interest. I could keep going.
please do. I have thought a bit about switching to one of the local outfits but kinda need a reason to go thru the trouble of switching. Help give me a nudge . Is it worth the hassle? I pay virtually all of my bills with the online service , we write maybe 10 checks in an entire year so that kinda stuff is important.
thanks for the advice.
IrishTxAggie
How long do you want to ignore this user?
AG
The Original AG 76 said:

Stagecoach said:

I'm referring to additional deposit accounts. More FDIC, access to funds when bank "a" servers crash, "local" people, smaller banks often pay higher deposit interest. I could keep going.
please do. I have thought a bit about switching to one of the local outfits but kinda need a reason to go thru the trouble of switching. Help give me a nudge . Is it worth the hassle? I pay virtually all of my bills with the online service , we write maybe 10 checks in an entire year so that kinda stuff is important.
thanks for the advice.
All local banks have the ability of autopay and eCheck. Checks are usually free. Interest rates on loans and deposits are typically better. Several wave ATM fees. Keeping the money local. No incoming wire fee (yes, Wells has a fee for receiving a wire).

If it wasn't for my business account at Wells, I would take everything out. It's just too much of a hassle to switch the business account right now.
The Original AG 76
How long do you want to ignore this user?
AG
IrishTxAggie said:

The Original AG 76 said:

Stagecoach said:

I'm referring to additional deposit accounts. More FDIC, access to funds when bank "a" servers crash, "local" people, smaller banks often pay higher deposit interest. I could keep going.
please do. I have thought a bit about switching to one of the local outfits but kinda need a reason to go thru the trouble of switching. Help give me a nudge . Is it worth the hassle? I pay virtually all of my bills with the online service , we write maybe 10 checks in an entire year so that kinda stuff is important.
thanks for the advice.
All local banks have the ability of autopay and eCheck. Checks are usually free. Interest rates on loans and deposits are typically better. Several wave ATM fees. Keeping the money local. No incoming wire fee (yes, Wells has a fee for receiving a wire).

If it wasn't for my business account at Wells, I would take everything out. It's just too much of a hassle to switch the business account right now.
I noticed this a few months ago when I had a large incoming wire transfer. They " charged" me $15 to receive my own damn money. I IMMEDIATELY transfered every dollar of it out so I guess thats why they ripped off the $15. Kinda pissed me off but I guess they all pull this stunt
IrishTxAggie
How long do you want to ignore this user?
AG
I receive a large wire every two months. In the grand scheme of things, it's peanuts compared to the wire itself, but it's still annoying as *****
Post removed:
by user
IrishTxAggie
How long do you want to ignore this user?
AG
SoupNazi2001 said:

The media is reaching at this point. 400 customers out of millions is a rounding error. Market obviously didn't care as stock was up yesterday.
It's not necessarily how many people. It's that Wells can't stay out of the news.
Post removed:
by user
halfastros81
How long do you want to ignore this user?
AG
We've been banking and have had our mortgage with Wells Fargo for yrs. no problems.
mhayden
How long do you want to ignore this user?
I think most big banks have incoming bank wire fees - I know BoA does but waives it depending on what level of customer you are.
Diggity
How long do you want to ignore this user?
AG
Looks like most b&m banks do charge for both.
aggiebrad94
How long do you want to ignore this user?
AG
Stagecoach said:

Need to separate ALL of the banks and brokerages. But still, if you look at the body of work over the past decade, WFC is way below the magnificent bars of malfeasance committed by peers with roughly 1/8 to 1/2 the total fines depending upon the constituent.

WFC has the misfortune of being the last of the last big banks targeted and so it's getting more headlines due to a lack of media grabbing headlines in the space. Roughly 1 in every 8 American citizens are customers of WFC (age 0 to infinity) so 400 people being foreclosed on because they were delinquent in their mortgage payments and didn't receive additional extensions/accommodations of credit due to a computer glitch in the risk management software is hardly newsworthy. At the end of the day the loan agreements were legally enforced. As soon as you miss a payment, you're subject to foreclosure at any bank. In this case, we're talking about folks who were many, many months behind and even a year or more. The press didn't report that. Loan defaults affect ALL borrowers in capital markets, no different than costs due to things like insurance fraud or torts.

I'm on the investment side, but frankly sick and tired of dealing with the bad press on the "bank" side of the enterprise. I met with Tim Sloan, CEO, at a management meeting in Houston last week. I'm not sold on the new Board or him yet, but the new head of Wealth is a gent by the name of Jon Weiss and he is outstanding.

If you're fed up with the community bank, I don't blame you. I've dealt with their nonsense personally as a customer. But I can honestly say that it's a tremendous company doing a lot things right. I still use a second "local" bank for deposit accounts, for many reasons, and so should you.
I joined the investment side last year, intentionally after the bad news hit. I needed to build a book and knew they would give me the time and space to do so. Haven't regretted it one day, even though referrals are pretty slow right now.

What customers and outsiders need to understand is that a HUGE microscope was placed on WF. They have audited and audited again every process, procedure, and department. If any company does that, it will come up with some issues. None of what you read now is "new" but rather the disclosures of what went on in the past and is being cleaned up.
Quinn
How long do you want to ignore this user?
AG
Stagecoach said:

Need to separate ALL of the banks and brokerages. But still, if you look at the body of work over the past decade, WFC is way below the magnificent bars of malfeasance committed by peers with roughly 1/8 to 1/2 the total fines depending upon the constituent.

WFC has the misfortune of being the last of the last big banks targeted and so it's getting more headlines due to a lack of media grabbing headlines in the space. Roughly 1 in every 8 American citizens are customers of WFC (age 0 to infinity) so 400 people being foreclosed on because they were delinquent in their mortgage payments and didn't receive additional extensions/accommodations of credit due to a computer glitch in the risk management software is hardly newsworthy. At the end of the day the loan agreements were legally enforced. As soon as you miss a payment, you're subject to foreclosure at any bank. In this case, we're talking about folks who were many, many months behind and even a year or more. The press didn't report that. Loan defaults affect ALL borrowers in capital markets, no different than costs due to things like insurance fraud or torts.

I'm on the investment side, but frankly sick and tired of dealing with the bad press on the "bank" side of the enterprise. I met with Tim Sloan, CEO, at a management meeting in Houston last week. I'm not sold on the new Board or him yet, but the new head of Wealth is a gent by the name of Jon Weiss and he is outstanding.

If you're fed up with the community bank, I don't blame you. I've dealt with their nonsense personally as a customer. But I can honestly say that it's a tremendous company doing a lot things right. I still use a second "local" bank for deposit accounts, for many reasons, and so should you.
Username checks out.
texrover91
How long do you want to ignore this user?
AG
This doesn't scream malfeasance to me like the previous stories, but only reinforces that WF is easily the worst of the big banks

We just pulled most of our money out - local branch manager was beyond incompetent.
Ric Clark
How long do you want to ignore this user?
Could it be because they are based in San Francisco?

Fortune Favors Valor
RockOn
How long do you want to ignore this user?
techno-ag said:

My Wells Fargo story. They bought a local bank I was a long time customer of. They retained the free checking. Then several years later they decided not to have free accounts anymore and started dinging me. Each month I'd call and explain it was a grandfathered account and have the charge reversed. They got very snippy about it so eventually I closed the account and moved to another local bank offering free checking. Then the non profit I worked with in town had trouble with them, and lost their old free account. So we moved that account. It all left a bad taste.

Came as no surprise when their scandals hit. If they treat the little guys bad, they'll treat the big guys bad, too.

Not defending bad business, but legally as long as they provided you a new account disclosure (including the fees) within a certain time frame before the charge then they are within their rights to do so.
techno-ag
How long do you want to ignore this user?
AG
RockOn said:

techno-ag said:

My Wells Fargo story. They bought a local bank I was a long time customer of. They retained the free checking. Then several years later they decided not to have free accounts anymore and started dinging me. Each month I'd call and explain it was a grandfathered account and have the charge reversed. They got very snippy about it so eventually I closed the account and moved to another local bank offering free checking. Then the non profit I worked with in town had trouble with them, and lost their old free account. So we moved that account. It all left a bad taste.

Came as no surprise when their scandals hit. If they treat the little guys bad, they'll treat the big guys bad, too.

Not defending bad business, but legally as long as they provided you a new account disclosure (including the fees) within a certain time frame before the charge then they are within their rights to do so.
No doubt. But it was not handled well on a national basis. Then, several things came out they were doing that was under the table. Treating small accounts poorly is a bellwether is all I'm saying.
Buy a man eat fish, he day, teach fish man, to a lifetime.

- Joe Biden

I think that, to be very honest with you, I do believe that we should have rightly believed, but we certainly believe that certain issues are just settled.

- Kamala Harris
handle234
How long do you want to ignore this user?
this feels like a function of all of their mergers and acquisitions over the years. those old computer systems often never get updated.
Refresh
Page 1 of 1
 
×
subscribe Verify your student status
See Subscription Benefits
Trial only available to users who have never subscribed or participated in a previous trial.