According to a story in yesterday’s DSNews, a senior Wells Fargo executive was called into court to testify about why the company didn’t operate in good faith as it considered a loan modification of a homeowner in Phoenix.
The case, widely publicized by the New York Times, centered on a Phoenix homeowner who had recentlybecome unemployed and found herself struggling to make payments on her Wells Fargo-serviced mortgage. Bobbi Giguere testified that she submitted request after request to Wells for a loan modification, along with the proper documentation required by the servicer.
“I submitted the paperwork three times, and nothing happened,” Giguere told the Times, adding that each time she called to check on the progress of her request, the bank’s servicing department had no record of her appeal and asked her to resend documentation
Nothing new here, is there? Here’s her story in her own words…
I can’t tell you how many e-mails and comments I get that tell this same story. So what happened on the stand?
Ohayon [the Wells Fargo exec] told attorneys during preliminary questioning that Giguere [the homeowner] had repeatedly failed to include a financial worksheet with her submissions, the Times reported. But in court, Ohayon was asked to read a letter from Wells Fargo that Giguere retrieved from her files, which made no mention of any missed documentation.
On the witness stand, Ohayon said, “Mrs. Giguere is right. The letter did not ask for a financial worksheet.”
Oh…so they say they ask for paperwork they never asked for and then denied her application based on said information. So what was the executive’s response? According to the New York Times, Wells Fargo had denied the homeowner’s application back in March but she was never notified until last week in court. They just let he continue filing modifications requests even though she had no chance of being approved.
Now that’s beautiful!
So what did the exec have to say about it?
Ohayon said, “I don’t necessarily think we’ve done a poor job of communicating with our customers, but I think there is an opportunity to improve the overall customer experience during what is a very difficult time for them.
Does that make sense to you? I don’t think it’s even comprehensible.
Unfortunately, the judge didn’t even censure the exec or Wells Fargo. I don’t know that it would’ve meant anything if he had, though.
If you’re like me and you’re in negotiations with your lender, you probably don’t expect them to bend over backwards to help you out. But you (and I) expect them to at least act in good faith and give our packages due consideration and diligence.
Doesn’t seem like that’s happening, does it?
Tags: bankruptcy, lenders, litigation, loan modification, wells fargo
September 9th, 2009 at 7:59 am
Hey Todd, great article!
This is exactly why I recommend (and think you do, too) that customers send their packages certified mail, return receipt requested!
They can’t say “What package?” when someone in their company had to sign for it….
Arghhhh!
Becky
Hardship letter writer
HardshipLetterPro.com
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Todd Temaat Reply:
September 9th, 2009 at 8:32 pm
I definitely agree with you, Becky. But even if you can say that Bob signed for the package on 8/31, they often just tell you to resend the info anyway because it’s lost. Of course, if you have a pattern of this, you can take the documentation to court with you if you need to.
It’s amazing how inefficient these companies are! Their efficiencies come on the lending side, not the servicing side…that’s for sure!
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September 9th, 2009 at 2:00 pm
I put in a request for a loan modification with Country Wide prior to Bank of America merging with them. CW offered and I accepted a 10 year interest only payment. The interest only payment would have allowed my husband and I to keep our home; making other payments on the principal. Well BA took over and everything with CW went out the window. BA claims they don’t know anything about it and has denied my request for a loan mod stating that we are “900″ negative each month. Well, what is a hardship? I am very upset at the prospect of loosing our home.
Reply
Todd Temaat Reply:
September 9th, 2009 at 8:25 pm
My guess is that the $900/month they reference is how much you’re short of the lowest payment available under the Obama Home Affordable Loan Mod program. My heart goes out to you and your family. But please remember to plan the next steps you need to take. Depending on where you’re at in the process, you may have 9 months or more in your home without a payment. I know losing your home is upsetting, but use the time and money wisely to prepare for what you know is coming.
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September 9th, 2009 at 9:26 pm
NACA is the solution in order for the banks to hear you out and give solutions. http://www.naca.com
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