With the National Association of Mortgage Field Services’ (NAMFS) shindig getting underway in less than 48 hours, we wanted to bring some facts, figures and opinions forward for others to contemplate. The incorporation of Religious based organizations is, in my opinion, an all time low. For an Industry which has absolutely no regard for the Contractors whom toil day in and day out, it would appear that the Propaganda Machine had to work overtime for this one.
Wells Fargo is at the forefront of the latest assault upon Contractors. Wells Fargo put taxpayers on the hook for up to $36.9 BILLION in bailout funds and programs plus an unknown amount from the Federal Reserve’s $8 TRILLION in emergency programs. This money was supposed to help the banks get the economy going again. But little of this money has gone to relieve struggling homeowners and increase the flow of credit to small businesses.
Wells Fargo is a major funder of the payday loan industry that preys on cash strapped working families by providing short term loans with annual interest rates typically around 400%. Wells Fargo provides credit to six of the seven largest publicly traded payday lenders; this credit is indispensable for the payday lenders’ operations.
Wells Fargo also functions as a payday lender itself, despite the fact that regulatory agencies have ruled against various forms of bank involvement in the industry on several occasions. Since 1994, Wells Fargo has offered direct deposit cash advances that now have annualized interest rates of 120%.
So, right from jump, the cozy relationship — THE FAR TOO COZY RELATIONSHIP BETWEEN A NON PROFIT BUSINESS LEAGUE AND A FOR PROFIT OUTSOURCER OF US JOBS — is spurious, at best. With lawsuit after lawsuit mounting up against Wells Fargo pertaining to the US Department of Housing and Urban Development (HUD) one really, REALLY wonders what is rolling through the mind of NAMFS Executive Director, Eric Miller.
When Wells Fargo discovered problems with the loans, it failed to notify HUD, which administers the FHA program, as required, a recent lawsuit stated. The action alleges more than 10 years of misconduct.
“The extremely poor quality of Wells Fargo’s loans was a function of management’s nearly singular focus on increasing the volume of FHA originations – and the bank’s profits – rather than on the quality of the loans being originated,” Bharara’s office said in a statement.