What the Wells Fargo Scandal Means for Mortgage Borrowers


What the Wells Fargo Scandal Means for Mortgage Borrowers

This should of been the question during the foreclosure crisis…

Mortgage lending could be collateral damage

But the CFPB’s consent order, daily news reports and two Congressional hearings have failed to produce specific data on exactly how many Wells Fargo customers were harmed by the bank’s conduct, and the extent of the damages they have suffered.

This leaves many to wonder — has the scandal affected Wells Fargo’s mortgage customers?

The illegal conduct of Wells Fargo’s employees did not involve the bank’s mortgage division, which is the largest retail mortgage lender in the country, but “there will definitely be collateral damage on mortgage lending,” said Adam Deutsch, senior associate attorney at Westwood, N.J.-based law firm Denbeaux & Denbeaux.

“The CFPB didn’t quite talk about the number and type of customers who were affected, but this is information we are all looking out for, because if Wells Fargo opened accounts and made negative reports on consumers’ credit reports, this will create collateral damage that will impact both mortgage lending and other types of consumer lending,” said Deutsch, whose practice focuses on consumer rights litigation.

“If someone goes to get a mortgage loan, or an auto loan or a loan for their child’s college education, or even to refinance their home, they may find that their credit scores were negatively impacted by the bank’s actions.”

Considering recent reports that Wells Fargo may have fired employees who were involved in these practices as long as a decade ago, the impact to customers’ credit could be quite severe, depending on the amount of unpaid fees involved and how long ago the negative item first appeared on their credit report, Deutsch said.

“Most people will not even know they were impacted until they go to apply for some type of line of credit, and even then they may not know what their credit score really is,” he said.

Full article here…

If you are in New Jersey and are looking for help with foreclosure, call Denbeaux & Denbeaux at (201) 664-8855 or fill out their online form for a FREE Case Evaluation. Let the lawyers and staff at Denbeaux & Denbeaux serve you!



4 Responses to “What the Wells Fargo Scandal Means for Mortgage Borrowers”
  1. Blu Loony says:

    Does anyone care the BBB has removed Wells Fargo’s accreditation status? Wells Fargo Home Mortgage is now at a D+ here’s the link: http://www.bbb.org/iowa/business-reviews/mortgage-brokers/wells-fargo-home-mortgage-in-des-moines-ia-102258#

    Wells Fargo Can’t stop hurting me. WFHurtMe.com
    Is there anyone at Wells Fargo that can help me?

  2. Tom says:

    The damages caused by the TOO BIG TO FAIL AND TOO BIG TO JAIL BANKS with the fraudclosures was a lot more severe than the fake accounts they added to their customers without them knowing about it.
    Why was nothing done to the banksters, the lawyers and judges involved to pull off one of the biggest financial scams in US history?

    Report the fraud to every so-called law enforcement agency out there and they all look the other way.
    Even if you hired a lawyer to work for you, that is just more wasted money.
    They will take the upfront retainer fee you paid them, keep that, and take a kickback from the banksters to do nothing for your case.
    They make money from both sides and you will still lose your home.

    Even if you try to bring your account current or even pay it off in full, they will not accept your payment. They earn more profit by forcing the fraudclosure by receiving 80% of the loan amount, paid by the government, and then resell your home at about 50% less than what you owed, and with their combined scam (Force placed insurance and reselling of the property) they make more money by forcing the fraudclosure than if you paid off the mortgage in full. You will lose!!! Your money is no good!
    If you report that to the ARDC (Attorney’s Right to Deceive their Clients) they do nothing either!

    So the wealthy corrupt can steal whatever they can from the hardworking citizen’s and that is called business, but if something happens to them to take their money, it’s a crime.
    Banksters use their pens to rob their customers, they receive huge bonuses!
    A person walks into a bank with a gun to rob it, he goes to jail!

    Massively failed and totally corrupt system we live in!
    Wake up people!!! It’s only getting worse!!!

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