Congress Wakes Up to Continuing Lies from Major Banks

The takeaway from this is that when Wells Fargo lies it is telling a whopper. The same is true for Chase, Citi and Bank of America. They tell lies that lead to ruin of working American families and they don’t care. Their only concern is protecting the fraudulent scheme that brought trillions of dollars in illicit revenue to them and then paying a “cost of doing business” fine or settlement that is literally a few cents on the dollars.

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see Wells Fargo Lies Wake Up Democrats

The latest in along chain of Wells Fargo scandals the recent admission by the bank that it “accidentally” foreclosed on hundreds (more likely thousands) of homes destroying the financial future of borrowers, in many cases leading to divorce, disease and death. And now WFB thinks it can escape by paying the foreclosed families $12,800 (down from $20,000 previously reported). Senator  Elizabeth Warren literally want the head of Wells Fargo — to resign. Congressman Schatz didn’t go that far but is asking some real questions.

The link to the above article provides a glimpse through the eyes of Brian Schatz, D-Hawaii, of what questions to ask, some of which can be borrowed to apply to discovery when defending foreclosures now, particularly those involving Wells Fargo Bank.

In his letter, Schatz said that he hopes that regulators take action against Wells Fargo over the issue, but Schatz also laid out the following lengthy list of questions for Wells Fargo and said that he expects answers by the end of the month:

  • When was the error in Wells Fargo’s HAMP underwriting tool first discovered? What actions did Wells Fargo take when the error was first discovered? At that time, did Wells Fargo examine whether the error impacted any customers?
  • What led Wells Fargo to examine the impact of the error on consumers who applied for a loan modification? When did that examination begin and end? When will Wells Fargo know the total number of impacted consumers, if the company does not yet know?
  • Have the impacted customers been notified that they were harmed by Wells Fargo’s error? If so, through what medium? Can you confirm that they received this notification? If not, what steps will Wells Fargo take to ensure that impacted customers are aware that they were harmed?
  • Has Wells Fargo notified impacted customers of the funds available to remediate the harm that they suffered? If so, through what medium? What will customers need to do to receive compensation?
  • What methodology did Wells Fargo use to determine that $8 million should be accrued for remedying customers for the harms that resulted from this error?
  • Please provide details on the specific types of harm that Wells Fargo plans to remediate for the impacted customers, and how Wells Fargo plans to make those determinations.
  • What terms will Wells Fargo require impacted customers to agree to as a condition of accepting remediation from Wells Fargo? Will Wells Fargo ask an impacted customer to waive any legal rights?
  • Through HAMP, the Treasury Department provided financial incentives to participating institutions who modified eligible troubled borrowers’ mortgages. Did Wells Fargo receive any incentives for the customers who were impacted by the underwriting tool error? If so, has Wells Fargo returned those financial incentives to the Treasury?
  • Did Wells Fargo report the foreclosures or any missed payments that could be directly or indirectly related to Wells Fargo’s errors to credit reporting agencies? If so, will Wells Fargo commit to working with the credit reporting agencies to remove these entries from borrowers’ credit reports?
  • Please provide information about the disposition of impacted customers’ foreclosed properties. Did Wells Fargo sell these properties? Does Wells Fargo plan to reconnect families to their homes?
  • In the same quarterly report, Wells Fargo announced an increase in its common stock dividend of 10% and a plan to buy back $24.5 billion of stock. Please explain how the company made the decision to use these funds for shareholder returns ahead of other uses, such as increasing consumer remedies or investing in improving internal investigations and controls. How much is Wells Fargo currently investing or planning to invest in improving internal controls and consumer protection?
  • At this moment, can Wells Fargo say with confidence that it has identified and disclosed all incidents of consumer harm across all of its business units? If not, why not?
  • Should we conclude from the steady stream of news of consumer harm at Wells Fargo that the bank is too big to have meaningful internal controls or policies to prevent violations of law and consumer abuses?

10 Responses

  1. Thank you reporting this. I placed a link on Elizabeth Warren’s love and get Twitter account. She had not done anything in the past. Please email senator schatz. Send him a thank you for helping and a short version of your story. Sorry but many still believe we are deadbeat homeowners who want a free house instead of have crimes against humanity served on us by all the banks. Our stories all different all the same the banks induced Foreclosures and are trying or have stolen or homes. All my Florida senators and representatives ignore me including Marco Rubio, Daniel Webster and Wilton Simpson. By emailing this senator he will see we are Harding working American families that have been delt the wrong deck of cards and we need restitution so we can move on with our lives. The health, stress, money issues this had caused us is unrepairable but restitution can be sweet and help repair what is left of our lives. Thank you and please good help us all

  2. anon– vote for who in November? The fraud was covered up by the Dems during their administration. And, it does nothing for the people to fire the CEO. They will just get another one. The Reps don’t have a clue what to do. If they were smart, they would expose all that was covered up during Obama. But, they are not smart.

    Fake foreclosures is far, far, more than the few hundred Wells Fargo admits to. And, the scheme goes far beyond HAMP — which was a dubious program initiated by the Dems in control that, in effect, is just a means to continue the real fraud and cover up.

    For those Dems who were notified of the fraud, and there were many, shame on you for doing nothing all these years. To those Reps who close their eyes eventual fall out will come – and there will be a true meltdown from the trillion dollar derivative market — the blame will then be placed on you. ,


  3. Vote in November right.

  4. Reblogged this on California freelance paralegal and commented:
    Hopefully the members of Congress of both parties will do what they should have done years ago to punish Wells Fargo and the other big banks.

  5. See SIGTARP June 2012 Pages 4-8 include footnotes



  6. This crime Wells Fargo Bank committed against the US Military families should put Obama in jail for allowing this to happen. As with those who had Washington Mutual Bank (WaMu) Dept of VA loans that were attached to the Ginnie Mae MBS the bank created, were not involved in the JPMorgan sell by the FDIC because WaMu stop having a financial interest they could collect as they gave the Notes, which are endorsed in blank UCC3 and are required at the start of the MBS to be relinquished to Ginnie to prevent the sale of the loans or change of interest rates or term.

    WaMu got themselves into a post home closing arrangement that does not involve the sale of the debt but acts like a bookie collecting bets on an NFL, NBA or MLB team and the outcome of the games. The MBS does not purchase the loans but invests in the securities receiving the principal & interest payments that first applies to the loan and the lender flow the amount in a flow-through method, but the accounting is still the same as the homeowner’s obligation the home loan is made.

    The FDIC, HUD, and Dept of VA is colluding to not meet their insurance obligation and allows the homeowner to assume a debt they do not own the investors. Brilliant crime when considering the interest rates were so low hide the bulk of the other loans of the 1.3 million Wells started servicing back on Jul 31, 2006, so that it would be hard to detect the overall crime.

  7. I think WFB knows what it is doing to customers and the lies they tell. I can tell you the lawyers know what is going on. Fraud on the court, fraudulent documents, origination fraud, forgery and fraud on the Register of Deeds office, too.

  8. My question is when will the courts wake up and stop turning a blind eye to the criminal activity?

  9. Fought Wells Fargo. 2008-2013. Fraudclosure on the townhouse on behalf of Freddie Mac whose name never was mentioned once In fraudclosure motions. All done with post dated copies. Robo signing documents. Incorrect balances. 7 denied modifications. Fought them for 5 years and to this day I still know I was correct. Keep your $12,800. I want my townhouse you criminal debt collector scumbags stole from us.

  10. This behavior is currently being exhibited by Chase (in the case of my loan) and undoubtably by most TBTF “banks”.
    What can be done about it?

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