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Big bank in hot water over kickback allegations

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Mortgage Professional America | 12 May 2015, 10:27 AM Agree 0
One of the nation's largest lenders is being sued over claims it received kickbacks for force-placed insurance
  • cheryl m | | 12 May 2015, 10:57 AM Agree 0
    Odd, I still have a bar coded letter from Wells from Oct. 1 2008 forcing me to pay their insurance because they were unable to read the loss payee clause on my ins. binder. Wow they're still doing this in 2015? Finally stopped after 7 faxed request and numbers of calls oh and a few threats.
  • Dominick F Sammarone | | 12 May 2015, 11:42 AM Agree 0
    This has been against the law for years. I guess too big to fail also means to big to follow the rules. People still complain every day about this bank. People still also take mortgages from this bank and deposit their hard earned pay check in this bank every Friday religiously. Think about this on Friday or when you're standing at the Big Banks ATM machine. When will the American "sheeple" wake up?

    (“If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks…will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered…. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs. I believe that banking institutions are more dangerous to our liberties than standing armies.” –Thomas Jefferson)
  • jburns | | 12 May 2015, 12:45 PM Agree 0
    It is simple, don't let your home owners insurance lapse, make your payments. Don't force the lender to have to purchase insurance to protect their investment. Forced placed hazard insurance has been a threat for the last 40 years that I can remember, it is an incentive to not let it happen. Quit blamming other people and accept resposibilty. That's just one example why not everyone should own a home.
  • pbrl | | 12 May 2015, 02:47 PM Agree 0
    who is not getting a kick back?? the government will be reluctant to really go after WF because I would think WF has
    been doing nice things for the majority of our honorable Senators and Representatives. At least those that have been in office for many years. another argument for term limits. like another is needed!!! You can bet the only ones pushing to punish WF are those in office that are up for re-election and the outcome of said election is in doubt. Those screaming the loudest for WF are those that have not been in office very long and are not "yet" on the proverbial gravy train. Kickbacks are the American way. BTW. in my opinion there is NO real money. the only things involving cash transactions are sex, drugs, and weapons sales. All types of sales to avoid paying taxes. All other business transactions are done by paper checks, credit cards, money wires. Our economy is not real. The world economy is not real. nothing but debit and credit ledger lines. sorry about this cynical rant but some days venting is needed. There is no solution to the current system. ps..........you can substitute any large banking/financial corporation name you want for WF as they are all synonymous
  • | | 12 May 2015, 03:23 PM Agree 0
    No jail time, no handcuffs, just the usual shakedown for fines and penalties then allowed to go back to business as usual so they could be shook down again at a later date.
    A very mysterious but lucrative symbiotic relationship between the banks and the regulators.
  • RJ | | 12 May 2015, 10:40 PM Agree 0
    Agree with jburns. This is something every lender does if your homeowners insurance lapses. You will get a prorated refund once you get your normal policy reinstated. If you mortgageed someone hundreds of thousands of dollars you would want insurance in place. What if you have a fire while your insurance had lapsed? This is easy to avoi. Know when your insurance comes up for renewal.
  • DROSS | | 13 May 2015, 08:36 AM Agree 0
    You obviously aren't familiar with their tricks, they notify you that they don't have proof of your homeowners insurance so you fax it to them, your agent faxes it to them and they still say they have no record of your homeowners insurance policy on file, wake up and smell the coffee!!
  • Joe | | 13 May 2015, 09:29 AM Agree 0
    Nice idea, if you're under the belief most large servicers have the capacity and shared interest in complying with the terms of the mortgage. Over the past two years I've used savings to pay off three mortgages rather than battle with Wells and BofA on claims of lapsed coverage. Two properties are townhomes in which the insurance is paid by the HOA. Rather than request evidence form the insurance provider, they send notices to me advising I have 15 days to provide evidence before placing their own coverage. I travel a fair bit and the final straw was coming home after a lengthy assignment to find Wells had placed a new policy - naming only themselves as insured - at an astronomical premium FOR THE ENTIRE HOA. Care to explain again how it's as easy as making your payments on time?
  • | | 18 May 2015, 09:45 AM Agree 0
    jburns: In Fiorida, Citizens Insurance has been forced to drop many of its customers (they're the state subsidized insurer used by many poor people, so the legislature has control).Before homeowners had time to shop for a new insurer, banks began notifying them they were required to buy the forced insurance, at prices a lot higher than Citizens, and threatening to auction the house if they didn't sign up for it. Most of these elderly owed their home for many decades. They're responsible and used to being homeowners. But they lie on fixed incomes now, and they're being forced out of their homes with higher-priced insurance than they need

    Forced insurance is illegal; the auctions are being postponed and fines justifiably imposed on the mortgage servicers who do this.
  • RiccoPitts | | 18 May 2015, 09:45 AM Agree 0
    It has nothing to do with making on time payments of your mortgage and everything to do with a con game being run by this wall street bank. Our government is a party to the con were they will make a big show of enforcement action with some type of $$ payment as a fine. The fine will only be a small part of the profit that was made off the con but has to be paid in order to stay in good terms with their co-conspirators, the US government. The largest transfer of wealth in history is on going now and the middle class is history.
  • | | 22 May 2015, 05:32 PM Agree 0
    Wells Fargo are crooks. That is all!!!
  • WI Popsicle | | 24 May 2015, 03:03 PM Agree 0
    To J Burns, You're just too funny. You think it's all that simple, sorry pal, it's not. I had my homeowner insurance paid up for a year and yet the TOO BIG TO FAIL BANK illegally told my insurance company that I had abandoned my home and forced the cancellation of my insurance then forced-placed their insurance not at double the price but 666% more, no lie. Didn't mater that they have verified that I do indeed live in my home after all and that this action is a direct violation of the mortgage agreement of which, get this, they can't find! Things that make you go hmmmm! Federal Attorney General ignores it all, hmmmmmmm, hmmmmmm! Think people are getting paid off? HMMMMMM!
  • A Bigger Better Mortgage | | 26 May 2015, 02:31 PM Agree 0
    In your closing documents you will more than likely find something that states that the lender has the right to insure the real estate in the event that you let your insurance laps. They are not responsible for YOUR personal items and will not ensure them because they do not have an interest (they don't own) your stuff. They do own the house, you only have ownership rights until you pay it off and are the person/entity on the Deed of Trust. As the owner of the house they have the right to protect their investment and as the owner they can choose who ever they want as an insurer. As the insurance agent they need to disclose the insurance and terms to the client, that would be Wells Fargo since they are taking out the policy. Rates are going to be higher for a bank, lender or investor because they are a high risk. The high risk comes from the FACT that the property is not occupied by the owner. The HIGH possibility that the property is in default or foreclosure and an extremely high percentage of foreclosed properties come with extensive damage such as the copper wire is pulled out of the walls, cabinets, toilets, doors and carpet are missing. Don't believe me go look at a HUD home. Wells Fargo also has the right to sell insurance if they disclose it to their client, and that client is Wells Fargo.They also have the right to earn a commission. They didn't break any laws, the problem is that the judge doesn't have the background or education in mortgage law or insurance law. The problem isn't the way Wells Fargo does business, the problem is that the law does not provide for consumers in this instance. However, it more than likely WAS disclosed to you in the closing documents that YOU signed that they will take out hazard insurance if YOU let yours laps and they have every right to do that, if not they would not lend you the money for your house. Next time READ WHAT YOU SIGN AND ASK QUESTIONS!
  • Invictus | | 11 Sep 2015, 05:31 AM Agree 0
    You are an insufferable idiot. If you knew ANYTHING about how the banking system works you would know that Wells Fargo did not "LOAN" any "money" to anyone to buy a house. If they did, then WHY did they and Bank of America and other large banks accept TRILLIONS in bailouts from the American people? Because, if they had not, they would and SHOULD have been bankrupt. What idiotic jerk muppets like YOU - who are always shilling for and lying on behalf of these CONVICTED CRIMINAL banksters - obviously do NOT understand, is that, BANKS do not "own" the money of their depositors and do NOT "mortgage" THEIR OWN money. Period. Were it not for AMERICANS being put on the hook for the TRILLIONS of private Federal Reserve debt money PLUS COMPOUNDED INTEREST, there would be NO money in circulation. PERIOD.

    The fact IS, the truth IS, AMERICANS DO NOT need THE private FEDERAL RESERVE DEBT MONEY CARTEL. We CAN - AND THE US CONSTITUTION SAYS WE should and must - create OUR OWN MONEY FREE OF ANY INTEREST or DEBT. America would be a PARADISE on EARTH, beyond compare in HISTORY, were it not for the CRIMINALS who have ENSLAVED AMERICANS with DEBT.

    To put it SIMPLY, what would America LOOK LIKE, if it had the tens of TRILLIONS paid to banks in America and Europe and the TRILLIONS paid to private .1% so called "elites", aka lazy bloodsucking parasites who never have worked a day in their LIFE , who are privy to the debt paid to the Federal Reserve bank via the US Congress and the TRILLIONS paid for the USELESS WARS that solved NOTHING in the Middle East, Iraq, Afghanistan et al? Tell us, what GOOD did the over $7 TRILLION AMERICANS are forced to pay for just those TWO wars?

    We would have NO DEBT as a nation...we would have ALL NEW bridges, roads, highways, schools, houses,hospitals,airports parks, high speed rail THROUGHOUT the country - when we have trouble even building ONE LINE in California, high speed planes BEYOND the now DEFUNCT Concorde, an unbelievably high tech, efficient and AFFORDABLE health care system vs the DEATH CARE system of corruption and FAILURE we have now where MORE PEOPLE not less, have an INCREASE in cancer and other diseases. Where big pharma makes hundreds of BILLIONS overcharging for their crap drugs and hospital administrators make THE MOST money, not nurses or doctors, f*cking ADMINISTRATORS!!!

    In short, it would be a PARADISE were it not for these PARASITES sucking ALL of our labor, wealth and property DRY. Instead, we have nearly 50 MILLION people on f*cking FOOD STAMPS, MILLIONS underwater on their mortgages, MILLIONS have had their LIVES DESTROYED, lost their jobs, homes, and the GREATEST lost of wealth of the middle class in HISTORY since 2008. ALL OF THIS is because of this sub-human POS criminal scumbag BANKSTERS and those who ENABLE them in government - HELLO ERIC "TOO BIG TO FAIL" HOLDER ARE YOU LISTENING YOU STUPID LOOK TURD?! ERIC NOW HAS A JOB BACK AT THE SAME LAW FIRM AS before HE LEFT TO not work FOR THE AMERICAN PEOPLE - THE SAME LAW FIRM THAT defends THE CRIMINAL BANKSTERS AND WALL STREET PARASITES who rob, and steal and defraud hard working AMERICANS and yet WHO HAVE NEVER WORKED A DAY IN THEIR LIFE!!!

    ENOUGH IS ENOUGH!!! When I see scumbags like YOU defending these KNOWN CRIMINAL FILTH it makes my BLOOD BOIL!!!

    HSBC = Criminal drug and terrorist money laundering and yet NO ONE WAS CONVICTED AND WENT TO PRISON!!!
    Bank of America CRIMINAL FRAUD of homeowners CRIMINAL BOGUS assignments via Robo-signers PROVEN and yet NO ONE WAS CONVICTED AND WENT TO PRISON!!!

    Chase, BOA, JP Morgan CRIMINAL LIBOR rate rigging and yet NO ONE WAS CONVICTED AND WENT TO PRISON!!!

    It LITERALLY goes on and on and on and on and yet YOU DARE to try and INSULT American HOMEOWNERS and hard working people with your PATHETIC DEFENSE of this parasite scumbag piece of sh*t criminal filth??!! You would get a punch in the FACE if you weren't hiding behind a keyboard like the COWARD YOU ARE!!!
  • Justice For All | | 24 Sep 2015, 09:36 PM Agree 0
    We are currently renting a home that is being foreclosed on by Wells Fargo. They have not followed the federal "Protecting Tenants at Foreclosure Act" of 2009, where they were supposed to notify us as tenants 120 days before the sale date. We found out 45 days ago and asked them to postpone the sale date due to their error, and they refused to speak to us because we are "not their client." Who do they think they are? They must like to go to court.
  • Bob | | 14 Oct 2015, 08:45 AM Agree 0
    A different bank charged us for insurance costing 12 times as much as our own, and ours had never lapsed. We and our agent already verified the information multiple times. It's fraud.
  • Ityou101 | | 21 Oct 2015, 12:42 PM Agree 0
    In Fiorida, Citizens Insurance has been forced to drop many of its customers, apparently we were one of them and although they said we received an opt-out letter (which we did not), they went ahead and moved us over anyway to some small insurance company. The new insurance company is requiring a mandatory inspection on our home, which is fine, but what is not fine is that they want to take pictures of my bedrooms including my children's bedrooms. Now why would they want to invade our privacy like that? In the 14 years we have been with Citizens, never once did they ask to take pictures of our bedrooms (or inside the house at all, for that matter). We have children and we have the right to protect our children by saying no to the inspection inside the house, well so I thought. Honestly, the only option we have, is to let them. However, we have decided not to let them, which means they will cancel us and we will then have to rewrite with another insurance company. We spoke to an Insurance Agent who has been in the homeowner insurance industry for 35 years and he said he has never seen or heard anything like this. He thought they would agree to not take the pictures of the bedrooms, but instead they are insisting and we are not going to allow it. Don't care what the outcome will be. We will take our chances. The homeowner insurance industry is a fraud and scam. We the consumers are always paying more to get less. Be cautions of these little insurance companies that might be threatening you and your family of what you know is not correct. According to what we've heard, these companies can't even pay out a claim if they had to, due to not having enough money. All I can say is be careful and stand firm on what you know is right deep down inside of your gut. If it doesn't sound right, then more than likely it isn't right.

    Forced insurance is illegal; but it's your word against theirs and guess who wins. Unfortunately, the power is in their hands. Push back!!!
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