Mr Mortgage Exposes Wells Fargo's Toxic Waste 4/7/08

[cuchumbituepeltre]

Who the fuck are not liking this?

[spectrum0590]

Thanks a lot for revealing this scam. It adds to the burden of people.

[superwhuffo1]

WOW...this is an important video...thanks for posting it...This bank is sooooo corrupt and unethical... they do not care at all about human beings and their legal rights...they took my land unlawfully and unethically...and had my cabin trashed out without any due process of law...

search:Unethical and Corrupted actions of Wells Fargo Bank

search: Kerry Walker Story

[D34thSetX]

That piece of paper is meaningless actually. It states that they had rates for people with credit scores that low. However, it doesn't mean that every joe or jane with 500 credit score was getting a loan from Wells Fargo.

[mem10fan]

AVOID WELLS FARGO FOR HOME LOANS AT ALL COST THEY ARE THE WORST EVER!

[WhistleBlowa1]

I was in a similar company that uses PHONE BANKS as huge gaming networks, to share, compound AND REPORT the false sales THIS COMPANY CLAIMS on a daily basis. I expect a WF employee to laugh at my description of "Hoogan" and the "SSTS system"

Cheats will go down, down down eventually. Hope Im there to show the courts all these emails I have!

[starsburnout]

Let this asshole analyze other banks. He knows shit about what went on during the bubble. Did Wells ever dive into option ARMS? This fuck needs to chase a parked car.

[TehPankake]

LOLOLOL XDDDDDDDDDDDDDDDDD

[eyeinkassit]

fargo made me and broke me ,,, they knew exactly what they were doing ..... 1 property became............ 6 with a business.......alot of money on paper??!!!!!!! over night!!!!!!! .... now these are the times,,,, losing jobs no money on the street all these tenants running out of town" new york city" ???? would love to see the turn around ???? but how much am i am going to still be holding ?????what the f%&#$#%%^%&)(???????

[kaykaymac]

yes well fargo did take the bail out money and used it to provide consumer loans and then in less than a month paid the bail out money back. the were actually told to take the bail out money along with other bank to provide stimulus because many banks needed it. Further more wells fargo is not a discriminating bank and to even think that is obsurd. you people really need to check your sources of information !

[paidday]

wtf. no one bend wf arm. they took the money. brought another bank. quit reading wf email talking points. Research it

[dbadassboy]

Wells Fargo invested in skid row properties made no improvements then used bailout money

[dbadassboy]

I believe Ms. Natasha Sears and Eileen Sotak should be required to execute affidavits regarding their findings.

I believe that LA Superior Court was negligent and violated my right to privacy and confidentiality and knowingly allowed Tami Ohana and Edith Stern to continue with the racism that was common over the years.

[dbadassboy]

It is common and acceptable for Wells Fargo to discriminate and ignore the rights, privileges and entitlements afforded to minorities.

[dbadassboy]

My civil rights were violated by Wells Fargo Home Mortgage, I told Natasha Sears and Eileen Sotak at EEOC. They were kind enough to spend two years investigating my complaint; they found reasonable cause to believe my claims, ruled in my favor and issued a final determination.

During that investigation multiple civil rights violations were observed and noted by EEOC.

[dsmdad09]

Oh sure it's not my fault I signed the contract it must be Wells Fargo. "mr. mortgage," it's rants like this that allow people to feel walking away from their homes is justified. Sure pass all blame you like, it's capitalisms fault, not Wells Fargo's

[warrenmcurrier]

I've got a combined total of $140k in BofA and Citi... today, Sunday, Aug 23, 2009!

This coming week I'm going to move this cash out of those two businesses, and place $100k in Wells, $20k in Banco Santander, and $20k into something 'offshore' (SwissFrancs, RMB, or gold... not sure yet)

Wells looks fine to me.

Read your contracts, don't spend what you don't have/can't afford. Live below your means...

or, don't.

[dbadassboy]

Casting call I have a movie in the making trust me its toxic waste on their books

[dbadassboy]

Wells Fargo Fraud I know how they work I am a former supervisor who worked at the sweatshop in Schaumburg, IL I know all about the fraud and predatory lending practices I filed a lawsuit Disability Discrimination Failure to accommodate multiple civil rights violations. They kicked me to curb and refused to honor my request for COBRA I Don Darryl Chicago

[dbadassboy]

At all relevant times they either knew or they reasonably

should have known, that the acts, actions and failure to

act of its managers, supervisors and agents would and

did proximity result in mental physical and emotional

injury to me including pain suffering and depression and mental anguish.

I. Don Darryl

310-922-9740

Team Lead Mortgage Loan Operations

Schaumburg, IL

[Skunkwow]

i love wells fargo

[wellsfargoinjustice]

Wells Fargo is a corrupt corporation preying on the American Public.

[saveurhomenow]

Don't Get Foreclosed On Modify Your Loan go to homesaver(DOT)tk

[jcfromadiki]

interesting how wells fargo doesnt seem to be hurting right now like every other bank. Interesting how Warren Buffet owns more than 10% of Wells Fargo. Good call

[reefvideo]

You are crazy, Would that be possible they sell off most of the Toxic Waste before all this happen????

[IdahyFCU]

Get your facts straight and learn how to read the pricing sheet. I was a subprime HMC for Wells using the exact sheet you demonstrated. Wells did do 80/20 or 100% cltv loans in which they brokered out the 2nd to another company down to a 580 credit score, not a 500. The sheet you hold up even shows that. The second everyone titghtened up lending in 07, Wells did the same. Wells subprime portfolio truly was much cleaner than everyone else in the market with centralized underwriting...

[Susieshepherd]

My friend has to work directly with Wells Fargo ...they use "temps" for some of their HUD approvals

[woodhind]

the new loas are Auto loans, due to declining homes values, you can borrow 169% based on the nada bluebook and can charge 15%-25.99% state max on auto loan, we cwll them tax benefit when Wells Fargo repos, no one can pay the payments 45k x 18.99= x 36months,,,no one any person keep that payment

[woodhind]

Wells Fargo still does sub-prime, they just do them direct from the WFF financial center and not broker the loans out, I worked for them. WFF till this day offers d 8%\9%, 85ltv, 4 points 3year arms to PRIME BORROWERS that don't know better..

[woodhind]

WFF has a program called TTO?:Term To Own, basically they put all your debt into a mortgage loan along with your auto lease and have it on a 15 year while reducing your overall monthy debt, but don't explain it's a short fix until customer needs a new lease. How can it be legal to charge 4 ponts and charge such rate? I understand that we did

[woodhind]

TTO to convince a Prime borrower it's what needs to be done, so we can get the loan over 80ltv so it didn't go prime and that meant making thm take extra money they didn't need...PART OF TRAINNING

[notu286]

I see your video is on the Mortgage News Daily web site, Nice Job!

[notu286]

Great we site! I made a video for a kid that fighting Wells Fargo. Please check out him web site. video above.

[licebaby]

Wells Fargo is a corrupt company full of incompetent people I'm not surprised at all that they're lying to their shareholders. I known people who worked there who commit credit card fraud, lazy, incompetent, blackmailed by external vendors for cash, sexual harassment and more. You'd be shocked but WF keeps terabytes of confidential customer data open internally where internal people can steal them.

[2vintage68]

Awesome, informative video! Really fun reading through comments too as the verbal battle between current WFC shills and former insiders is extremely illuminating. Of course they did all this stuff, AND MORE. Look at the post below; this guy thinks its great that they sold most of this fraudulent garbage.

[freddytuber]

How come they just now posted good earnings and even raised dividends? Are they lying?

[vizionkc]

Awesome Video Very Clear Cut.

[christophgerald]

I miss the 100% stated 80/20 with a min 620 score, no reserves, rent free.............

RIP

[davidluk8]

Thanks for the video.

Most corrupted banking system.

[poolerboy0077]

IndyMac just died today. More material another video.

[sunyclime]

Hey jerky. WHat are you trying to say? That they should have not offered the products that everybody in the marketplace was offering and what the street was buying??

Trust me the only thing wrong there is the equity piece, the rest of the paper was sold and is performing better that the rest due to common sense underwriting unlike COuntrywide, Indy, etc.

[BillDFC]

I loved Wells Fargo when it was on T.V. Remember Jim Hardy the left-handed gun? These old westerns were great.

[NOR19ANDRO]

Wake up people...who should we really point the finger at, these huge banks that are in business of ripping people off to make a quick buck or the ignorant customers who go out and get these loans. People go out here and get HELOC's like its a good thing. IT'S A FREAKIN CREDIT CARD ON YOUR HOME WHICH LIKE ANY OTHER CREDIT CARD IS REVOLVING CREDIT. I cant understand if you as a customer cant payoff you $2000 Visa card, what makes you think by consolidating it on a $25K HELOC will be any easier.

[rrico2]

Not only did they sell most of these, but they also stopped doing stated subprime years ago. They still originate this business today, but it's full doc. Those of you hating on WFC must have lost a ton of money on WFC and IMB and are just sore.

[Tiggernaut1]

Amazing what a person with a webcam can say.....97% of what he's saying is untrue. Try and get a loan with a low FICO and high debt ratio....it won't happen. Check out Wells Fargo's stock prices against the TRUE subprime companies.......originating vs. servicing a purchased portfolio from another company are apples and oranges.

[touchdownjoey]

just wait till the shit hits the fan with the Home Asset Management Account home equity lines. Lines of credit that increased automatically with an online appraisal once a year, and would never go down.

[markmti]

I know the internal...I was there for 20-years. No Ratio loans for $1 million all day long as long as you had 2-years proof of working at mcdonalds with 6 months piti or iti on io loans.

[luge668]

My apologies - that's 3-5K a month...

[luge668]

... boy, if you only knew the internal... 50% DSR's? I don't think so - I've seen up to 60... Liar loans? How about the equity aspect... It was mandated (unspokenly) to increase the income by about $3-5K back in 2005 to get loans booked... Without customers knowledge... Lets hope those people were responsible... There is lots more, but I don't even want to run the risk of getting in trouble... Though, any media or lawyers that can promise a payoff - I will sing like a bird!

[rrico2]

What are all of you fools talking about? You post on here as if there were no underwriting standards. It's well known in the industry that Wells has historically been one of the most conservative banks. Just because a loan is stated doesn't mean that they are not put thru a reasonable test. I know for a fact that they do.

[markmti]

every time I see the CEO say 'we never did any other those type of loans' and only take a single digit percentage write down on a bulk of loans, wuch as HELOC's, where we know the default rate is double digit and someone saying 'if Buffet is invested they are the best, it is time to come out with the truth. And that it, Wells did it all. Just like CFC.

[quantumleap7219]

I'm no fan of Wells. But you were a little dishonest claiming that they went all the way to 500 FICO with 120 day late and then 100%. That sheet showed you couldn't combine all those factors on the same loan. I'd be more impressed if these videos had come out a year ago. Instead you just seem to be telling us what we already know.

[markmti]

Nope...even Wells admits to owning $84 BILLION in Home Equity loans/lines. They are worth 1-5 cents on the dollar. You are wrong ad they all are on Wells.

[pistanu]

Hey man, what you say is true: they Did these loans, they service these loans!! BUT see the caps. They are not their loans Wells close mortages as much as everyone else, difference was that Kovachevich CEO back then, decided not to use WELLS cash on these, so they created the loans based on the investors needs.you think are their TOXIC WAISTE , THEY ARE NOT. largest investor Deutche Bank,Jumbos mainly, second largest CITI, I also have seen BofA and Chase and so on and on. please check your facts

[markmti]

That guy (not me) yanked out equity every year to the tune of 80-90, even 100% of the value at the time. One year later, values are down 25%, all financing options are gone unless this guy makes $250k per year (only had to make $100k a year ago to qual for the same deal) and walking away is a prudent biz decision.

But even in other states, interest only and other exotics were very popular. Subprime was very popular in non-bubble states. Now, those borrowers have no financing options.

[markmti]

The lack of financing is national and will eventually take down the regions that may not be feeling the bubble burst - WA state is a perfect example.

[markmti]

national phenom but a disaster regionally. Regionally, very damaging to the US economy as a whole. Dennis Kneale loves to point out how the mortgage prob is only a few states, CA, FL, AZ, NV, NJ, OH, CO. However, there goes 70% of the US GDP, 80% of the real estate wealth effect etc. I dont care about the Nebraskan's whose value went from 150k to 250k. What is devastating is losing the wealth effect created from the guy in CA whose home went from 400k in 1998 to 1.5 mil in 2005 like me.

[christophgerald]

Greed is the guilty party my fellow colleague.....Most lenders in the game did theseinsane loans. IndyMac, my old employer, had a 620 100% LTV stated, no reserves, rent free, First time home buyer ok, 6% seller concessions......IN FLORIDA...OUCH....That really was just the tip of the iceberg. ONLY RETAIL IN THE FUTURE

[markmti]

most everyone sold that...but indy and countrywide were especially dirty.

[rcmtgs]

I'm old school from s&l days so talk slow, since this is HUGE and some of us still live here in America, is there anyone on your radar screens reliable, trustworthy, experienced enough that can settle these things & guide us thru the dark and get us safe to shore...and i'm not talking about the azores, just trying to get to the keys, but really, i ck'd out bill seidman's stuff, kpmg--prob not yet, egan-jones still has a reliable point of view, i'm talking solutions, what are they..or who?

[larrythemalicious]

this is excellent! finally someone backs up what they're saying with numbers.

[mortgagetrader]

Right on the money Kona! Mr. Mortgage doesn't want to fess up that some retail and sold them on a financial timebomb, often taking them out of a "safe" fixed rate product. He also doesn't want to reveal the fact the the commissions on that crap was often magnitudes greater than the "old" fixed rate products. Why is Mr. Mortgage now living in a trailer park? Because he had to leave town to avoid the angry mob that wants a piece of his ass for selling them out.

[markmti]

This is a TOP DOWN issue, not bottom up. Mortgage brokers/bankers would have had nothing to sell if the Banks, specifically Wall St Banks, did not invent the loan programs to stick in the hands of the hundreds of thousands of street level loan officers.

5 investment banks are responsible for 75% of this crisis. The very banks the Fed is rallying behind right now.

[mortgagetrader]

OK, Mr. Mortgage, I'll agree with you that this stuff is TOXIC WASTE. So much so, that we did everything possible to keep it out of our house, and if that wasn't possible, we got it in & out of our house as fast as possible. We sure didn't want to live with Toxic Waste... since ultimtely we knew that whoever had the most exposure would end up burnt... or living in a trailor park, perhaps next door to you.

That being said, now DOROTHY, let's get back to business (continued)

[mortgagetrader]

(continued) When you say things like "Mortgage brokers/bankers would have had nothing to sell" you sound like Scarecrow again. You always had fixed 15 & 30 to sell, and did so as long as rates were falling. But when rates bottomed out a few years ago, YOU moaned that you couldn't refi people unless you had a product with lower monthly payment. We sat in on some of those focus groups. Why don't you address the inflated valuations of Alt-A paper & commissions for those who sold them?

[markmti]

this just shows your ignorance about the future and WHAT WILL HAPPEN. Perhaps, when Aurora was doing 100% stated/stated for 600 borrowers, WFC looked conservative.

In retrospect, a 95% CLTV at a 620 score to $1 million, qualifying at interest only payments with a 50% DTI full doc or stated is a very risky loan programs.

[markmti]

Especially, when values have been hit so hard and that loan/home is now in a negative equity position.

As values drop and these borrowers cannot get out or refi, they will start to default to a greater and greater degree.

[markmti]

As for their subprime, not all lender did corresponent subprime at Welsl scale. Maybe 10 lenders is all. New Century, Accredited, Countrywide etc all sold Wells subprime product. Wells still owns about $30 billion of it...all essentially worthless.

I am more interested in their $84 BILLION in worthless Home Equity loans/lines and their $100 Bil of intermediate-term ARMs they are carrying far below market rates, with many in a negative equity position.

Wells is in trouble folks.

[Skiryan26761654]

Wells Fargo wouldn't do any equity loan/home equity or second mortgage if the cusotomers cltv is above 85%... the banker should reject the loan/equity line the customer is trying to do... I work there as a personal banker..

[freddytuber]

You don't know what you are talking about! I did get a 110% line of equity by agreeing to a slightly higher interest rate. Personal banker my ass.

[mrtgmike]

This guy is an idiot....If you know ANYTHING about the Mortgage business ALL the banks did these types of loans. Wells Fargo is about as vanilla as they get. The only bank I know that is more conservative is Bank of America. Countrywide's rate sheet and programs would make a Nun blush. I worked for both Wells and Countrywide....don't believe the hype.

[bdc03]

Most people don't know about the mortgage business...IDIOT.

[lairdwd]

Great job. A voice for reason and truth.

[jim9847]

Good Job! You are doing the job the main stream media is wholly unequipped to do.

[codediporpal]

Keep it up. I love seeing the nitty gritty details that you just cannot find in the main stream media.

[hnordber]

Wells Fargo towed the line in responsible lending. They have the lowerest default rate and are the only AAA rated company by Standard & Poor and Moody in the US, and 1 of 2 internationally.

[hnordber]

Nice commentary, but missing key info. Wells Fargo never denied offering subprime loans. That's what Wells Fargo Financial was all about. Wells Fargo had a policy that Wells Fargo Financial could not give a subprime loan to anyone that can qualify for a prime loan. Additionally, Wells Fargo closely monitored the subprime loans and offered a free service to help people get their FICO scores up. They periodically reviewed the loan to see if it will fit in the prime program. more to come...

[rcmtgs]

Great job Mark, I like how you show rate sheets to the public too, that's how I teach clients what the hecks happening to them (& of course how I make my money). But really, you should put Easy Al up on auction. Gotta teach the public, so keep up the good work & got to teach the LO's too, keeps them sometimes honest. I like Wells! (except would always pay the 25 bps for Citi's 5/1 2/2/6 if I had to use the 5/1...when's Citi's slides coming up?? No pun intended.

[largo2001]

Thanks God for Mr. Mortgage.

You allow me to smile through default, bankruptcy and layoffs...

[westwest888]

mr mortgage rules.

[wcoeqpk862]

hey ive watched all of your videos (and rated them a 5 :]) but any who i have a question for you. its obvious that you believe these guys are all liers (i have the same view) but i want to know what you need to see ie news, events, a statistic in order to finally say we might be at the bottom of this and that these stocks might finally be able to move higher for the long run. and where do you think these might head and how much longer do you see this crisis lasting for?

[gennx30]

huh. Seattle has thousands of condos homes and retail being built.

Its as if they are expecting 100,000 new residents moving here

Whos gonna live in them? Even if Gen Z comes along-they cant buy one with Burger King salaries...no matter how low they go

[churchfootballleague]

youre a freaking genius the way you explain stuff

[mortgagetrader]

borrower alike are going to be in a world of hurt.

Eventually the YBR will lead you to the question of where were these firm's TM teams? Alseep at the wheel? MIA? Jumping up and down, but Sr. management telling them not to ruin the party?

Where?

The answer...

YOU CAN'T HANDLE THE TRUTH!

[KingJamesBible]

well done

[tyronebiggums3]

$15,000 for that painting? TAX2000 has that exact same painting in his videos. It's a reproduction, right?

[dog24bert]

Great analysis and presentation.  Thank you!

[billtasen]

dude, check out First Federal's 10k and monthly reports. 600 million in crap, and they are only one third thru resets

[33deagle]

High quality video! Keep them up!

[seabassbanker]

easy AL

hahahaha

THAT FREAKING GREAT

[maizegolfer]

Excellent work, hedgie. Financials are toast.

[whateverthismeans]

Great video again, thanks!

[bdc03]

Great vids keep em rollin!

[uclaztec2]

Great stuff Mr. Mortgage. I think everyone interested in the economy needs to see your videos. You should expand your search tags to include "economy" "recession" " "banks" "foreclosures" "real estate." More people will be able to see your stuff by expanding your search terms.

[markmti]

thanks for the advice...newq to this. For the past year, all my research went to the fundies.

[reefvideo]

You are crazy, Would that be possible they sell off most of the Toxic Waste before all this happen????

[PotSmokinFoo]

Man...You're really pumping out some great videos, Mr. M. Thanks for giving it up for the little people out here.

When this blows over, may I suggest you consider switching to cannabis as your drug of choice. It's relaxing, you'll sleep better, and it won't mess up your sex life the way flake does.

Thanks again, brother!

[Crashof2008]

Keep up the good work Mr. Mortgage.  You're the go to guy for what's coming down in the housing sector!

Mr. Fed

[markmti]

On a refi there is roucourse, not on a purchase which is why they are trying so desperately to get people to refi, even if it involves cutting loan balances significantly.

Leaving the keys 'jingle mail' is most cases is the only option. Tell them to save their money for the next few months for security dep on a new place. There is a good chance the bank doesn't foreclose for months, however, in order to forego the write down awaiting a bailout.

[Crashof2008]

Interesting to note that growing phenomenon of "jingle mail" (where the occupant mails in the house keys) was a KEY variable in pricing various derivative swaps incorrectly with catastrophic results.

The standard pricing assumption used to value many of these derivatives on the books was that people would FIRST default on their credit card payments, THEN default on their car paymentss, and FINALLY on their homes.

Jingle mail changed all that and this was a key cause for derivative crash.

[PeakedEarth]

If you had a house, you got a 2/28 ARM and 100% loan with original loan at 7.25 and now it reset to 10.5%, and now the house is worth less than the mortgage and the mortgage payment is much higher, would you just walk away and rent? Can the bank get you for a Deficiency Judgement? I'm a family attorney and I'm trying to help a very poor family, and I don't know what advice to give. It seems to me that they should just mail in the keys.