Who in their right mind would do business, any kind of business, with Wells Fargo?
As the this criminal enterprise posing as a bank continues to be hit with fallout from its sham-accounts scandal, it is facing allegations that it put the screws to customers in yet another way: by slapping them with fees for delays in processing mortgage applications.
A former Wells Fargo mortgage banker who worked in Beverly Hills alleged in a lawsuit this week that the bank falsified records so it could blame holdups on borrowers — and that he was fired him for trying to report the practice.
When borrowers apply for a mortgage, they are typically guaranteed a set interest rate — assuming the loan is approved within a certain time frame, often 30 to 45 days. If approval takes longer, the borrower can still get the promised rate but there are financing costs associated with extending the guarantee.
Wells Fargo’s policy, like that of most lenders, is to cover those costs itself unless the delay is the borrower’s fault. Then, borrowers are charged what’s called a rate-lock extension fee.
In his lawsuit, former banker Mauricio Alaniz alleged that the Wells Fargo’s mortgage-processing and underwriting division was understaffed, leading to chronic delays that were not borrowers’ fault. But rather than have the bank waive the rate-lock fee, workers would falsely report that borrowers had submitted incomplete or inaccurate information.
Feckless Wells Fargo would not comment on the lawsuit.
Source: LA Times
Categories: Sacramento Update