Wells Fargo Downsizing Mortgage Business As Pandemic High Wears Off

By TYRONE TOWNSEND and KIMBERLEY HAAS Wells Fargo leadership has laid off employees in a move that is being blamed on a dramatically smaller originations market. In a statement to The Mortgage Note, Spokesperson Jennifer Langan said the latest Mortgage Bankers Association forecast has total originations for 2022 at $2.4T, down 40% year-over-year, with refinances down over 70%. “The home lending displacements are the natural result of cyclical changes in the broader home lending environment, as has been acknowledged by most mortgage providers across the industry. Employees affected by these changes have each been an essential part of our success. We are carrying out displacements in a transparent and thoughtful manner and providing assistance, such as severance and career counseling,”…

Bad Behavior In Lending: Sham Job Interviews, “Rampant” Fraud

By CHUCK GREEN Alleged bad behavior and fraudulent activity in the mortgage industry have made news headlines in recent years and despite attempts to get lending leaders to shape up their ships, at least one person who reports on these issues says problems are common, even “rampant.” One of the most recent examples of these alleged incidents involved sham job interviews for Black and female candidates at Wells Fargo & Company. Wells Fargo in California has approximately $1.9 trillion in assets. They serve one in three U.S. households and more than 10% of small businesses in the United States. According to former executive Joe Bruno, company leaders at Wells Fargo allegedly put minority candidates through the interview process for positions…