What to expect at HousingWire’s Spring Summit

The focus of the Summit is The Year-Round Purchase Market. Record low rates led to a banner year for mortgage lenders in 2020, and this year is expected to be just as incredible.

Increasing lending and servicing capacity – regardless of rates

Business process outsourcing and digital transformation are proven solutions that more companies in the mortgage industry are turning to. Download this white paper for more.

HousingWire's 2021 Spring Summit

We’ve gathered four of the top housing economists to speak at our virtual summit, a new event designed for HW+ members that’s focused on The Year-Round Purchase Market.

An Honest Conversation on minority homeownership

In this episode, Lloyd interviews a senior research associate in the Housing Finance Policy Center at the Urban Institute about the history and data behind minority homeownership.

Politics & MoneyMortgage

Scandal-ridden Wells Fargo completely revamps compensation plan

Change coming soon in January 2017

Wells Fargo just announced it is totally revamping its compensation model for retail banking beginning January 1, 2017.

“We believe this decision is both good for our customers and good for our business,” Wells Fargo CEO John Stumpf said. “We are eliminating product sales goals because we want to make certain our customers have full confidence that our retail bankers are always focused on the best interests of customers.”

This change comes just after the Consumer Financial Protection Bureau levied the largest fine in its history — $100 million — against Wells Fargo Thursday for the "widespread unlawful" practices of employees who opened more than 2 million fake accounts to get sales bonuses.

Wells Fargo faced $185 million in fines, and fired 5,300 of its employees. Now, however, it is taking a step that no one expected: it will completely revamp the employee compensation plan and eliminate all product sales goals in retail banking, effective January 1, 2017.

The announcement of scandalous behavior from Wells Fargo [and its workers] is not uncommon. 

HousingWire's own Senior Financial Reporter Ben Lane said that the Wells Fargo fake accounts fiasco serves to prove that big banks didn’t learn anything from the financial crisis.

Just last month, the big bank needed to pay out $3.4 million to customers for a mailing error.

And a few months prior, just in May, the CFPB took action against a former Wells Fargo employee for an illegal mortgage fee-shifting scheme

Late last year, Wells also needed to repay Houston homeowners $5.4 million after foreclosing on a home without righteous ownership.

And Wells Fargo also agreed earlier this year to a $1.2 billion settlement with the Department of Justice over charges that it violated the False Claims Act with its Federal Housing Administration lending from 2001-2010.

According to the Department of Justice, Wells Fargo admitted, acknowledged and accepted responsibility for, among other things, certifying to the Department of Housing and Urban Development, during the period from May 2001 through December 2008, that certain residential home mortgage loans were eligible for FHA insurance when in fact they were not, resulting in the Government having to pay FHA insurance claims when some of those loans defaulted.

Stumpf recently told The Wall Street Journal that the fault does not lie in the bank’s systems or culture, but rather with bad employees.

Of course, that poses one important question: why change the compensation plan?

Most Popular Articles

FHFA extends forbearance period to 18 months

In an effort to protect homeowners, the FHFA extended forbearance coverage to 18 months and pushed the eviction and foreclosure moratorium to June 30.

Feb 25, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please