Even after numerous recent transgressions, Wells Fargo is experiencing more trouble. Several lawsuits are in the works against them, claiming that the bank changed the terms of bankrupt borrowers’ mortgages without their consent.
They lowered monthly payments yet they extended the duration of the loans which increase the interest they would pay over the life of the loan by a large margin. They also did this without the needed consent of their customers or the bankruptcy courts. On the other hand, Wells Fargo denies the claims stating that the loan modification docs were signed.
In 2012 Wells Fargo paid a huge settlement for poor foreclosure practices and lending services. Last year they paid a hefty settlement for reckless lending under the FHA program. Then they were caught creating millions of fake bank and credit card accounts which cost the CEO his job.
Checks & Balances
Although the recession revealed many problems within the banking industry, most banks seem to have gotten on sound footing. Yet there still seems to be a lack of checks and balances in place within Wells Fargo.
Are you looking to hire top banking talent?
Contact the Rhonemus Group to discuss your options. CEO Brian Rhonemus has nearly 30 years experience in the banking industry which gives him a keen ability to identify top candidates who become stellar performers for his client companies.