Going to the Well!
Once upon a time, Wells Fargo was a joy to deal with when purchasing short sales. They were responsive, timely and reasonable in their request. As of late, they have caught BOA it is…..or maybe they hired some genius from BOA! Either way, they have become a very cumbersome company.
On a recent short sale, Wells was in second position. They denied the short sale because “they didn’t like the buyer”! WTF! I can’t wait to see how much they like the buyer when the property is sold at auction for a 36% discount to retail versus 9-15%……oh…..I forgot….Wells is servicing the loan so they WAN’T the property to go into foreclosure so they can bilk the investor who owns the note for even more money!
Read the article below. According to Mark Calvey of the San Francisco Business Times; there was a posse at the annual Wells Fargo get together (aka their annual meeting) who expressed their disgust as to how the company is being run. I’d love to know how many buyers of short sale properties with portfolios owned by Wells are turned away. Compare this figure to the same stat involving mortgages that are being serviced by Wells. I’ll bet the numbers are dramatically different.
Wells Fargo CEO hears from angry America at annual meeting
The Business Journal – by Mark Calvey, San Francisco Business Times
Wells Fargo & Co. ’s annual meeting routinely draws protesters and shareholders advocating a range of social issues. But Tuesday’s gathering was more intense than in previous years, with shareholders calling for the bank to adopt an immediate foreclosure moratorium and waive principal on troubled mortgages.
At one point, five shareholders were escorted by San Francisco police officers out of the meeting, arm in arm, with one shouting as she left, “Profit over people isn’t good for the United States.”
The chants of protesters, which included “You owe us,” could be heard from 15 floors below the Julia Morgan Ballroom on California Street in San Francisco, where the meeting was held. The Service Employees International Union and other public employees’ unions, along with several housing and faith-based groups, were prominent in the protest that greeted arriving shareholders.
Wells Fargo is the parent of Wachovia Bank, which is second in Triad market share behind only BB&T.
The two-and-a-half-hour meeting at times took on overtones of angry voters attending a school board or city council meeting rather than the usually more sedate gathering of bank stockholders.
Some said they would not step away from the microphone until Wells Fargo agreed to a foreclosure moratorium. Turning off the mic did not deter them.
The bank was equally persistent in rejecting a foreclosure moratorium.
“No. We’re not going to agree to a moratorium. It doesn’t help the process,” said Wells Fargo Chairman and Chief Executive John Stumpf. “A moratorium only puts off the inevitable.”
He said when Wells (NYSE:WFC) moves to foreclosure, the borrower is typically 16 months behind on payments and a fourth of the troubled homeowners have already abandoned their properties.
Those attending the meeting went through the usual metal detectors in addition to being required to hand over tape recorders to the coat check and get their hands stamped before proceeding into the main ballroom.
Stumpf defended his $19 million pay package last year, saying 70 percent of his compensation is based on corporate performance.
Those speaking at the annual meeting in favor of a shareholder proposal calling for a review of the bank’s foreclosure practices captured the impact of the nation’s housing crisis.
An Oakland, Calif., resident shared her experience in trying to save her home, Milwaukee residents sought the bank’s help in fighting foreclosure blight, a Nebraska man said he’s unable to refinance because his home has lost too much value, and a pastor said his church is suffering as parishioners lose their homes and move away.
“Maybe we just need to pray,” the pastor said.
All shareholder proposals opposed by the bank’s board failed. The proposal calling for the foreclosure review received 22 affirmative votes, while the ability to call a special shareholders meeting with a 10 percent stake, down from 25 percent, won 44 percent support; cumulative voting for directors won 29 percent of the shareholder vote; a measure calling for an independent chairman won 30 percent support and another on board compensation won 5 percent.
The shareholder give-and-take included questions on the validity of the bank’s book value while some admonished Wells to stop blaming the former Wachovia Corp. for its problems. Wells bought Charlotte-based Wachovia in late 2008.
“There is much suffering,” Stumpf told those attending. “And at the heart of that suffering is a lack of employment opportunities.
“We forgave $4 billion of shareholder capital to keep these families in their homes,” Stumpf said, noting that the bank has helped 700,000 borrowers through loan modifications. He said 80 percent of those modifications were done outside the federal Home Affordable Modification Program.
“I get it. There’s a lot of pain, and we’re doing our level best to help,” Stumpf said.
As if those attending needed any reminders that America is in a world of hurt, Stumpf went into overview on the bank’s performance. Although 2010 was a good year for Wells Fargo’s bottom line, revenue took a hit as loan demand from consumers and businesses waned.
“It’s not that we’re approving fewer loans,” Stumpf said. “It’s that we’re seeing less demand.”