What’s In a Relationship?
Salvaging Relationships with Appraisers…
Wells Fargo, one of the oldest banks in the country, is working hard to salvage relationships, not with just customers and regulators, but appraisers as well. Wells Fargo recently stopped using Appraisal Management Companies and is aggressively trying to build an appraisal panel of their own.
Appraisers are excited that one of the largest banks in the country is no longer using AMC’s. We give Wells Fargo high “Kudos” for making a change in the right direction. However, there is a bit of a dilemma when making an informed decision whether to have a relationship with Wells Fargo or not. We need to dig a little deeper.
Appraisers should have all the information to analyze all the pros and cons to make an informed decision on what business and personal relationships to maintain. Wells Fargo is utilizing Appraisal Port. Appraisal port is owned by FNC. FNC was recently purchased by CoreLogic. CoreLogic is a member of the Real Estate Valuation Advocacy Association (REVAA). REVAA is the AMC trade group which has been lobbying our regulators and making false claims of appraiser shortages and other mistruths about our industry. They have been attempting the demise of the appraiser. Is it possible to avoid CoreLogic entirely and still be an appraiser? Maybe, maybe not. CoreLogic just acquired Mercury Network for $155.5 million. Appraisers should have all the information to analyze all the pros and cons to make an informed decision on what business and personal relationships to maintain. Should appraisers have a relationship with companies that do not have their best interest in mind? Do you have a relationship with REVAA members? Should you? Click here to see a list of REVAA members.
|To discuss concerns over CoreLogic’s holdings within the industry, contact the FTC at firstname.lastname@example.org or click here to file a formal complaint.|
Wells Fargo’s history started 165 years ago when they opened for business on July 13, 1852. Below are some memories of Wells Fargo from the past 30 years.* This list includes only “memories” from Wells Fargo and does not include “memories” associated with acquisitions of other companies by Wells Fargo.
- 1986 – $75,000 fine for failing to report larger currency transactions
- 1992 – $43 million settlement of a law suit for fixing interest rates on credit cards
- 2002 – $150,000 penalty to settle SEC charges of switching customers among Mutual Funds
- 2005 – $3 million fine for improper sales of mutual funds
- 2009 – $1.4 million buy back of auction-rate securities for misleading investors
- 2011 – $1 million fine for failing to send disclosure statements to customers
- 2011 – $16 million to settle charges of violating the Americans with Disabilities Act
- 2011 – $125 million settlement for misrepresenting the quality of mortgage backed securities
- 2011 – $85 million civil penalty for steering good credit customers to sub-prime mortgages
- 2011 – $37 million settlement for municipal bond rigging
- 2011 – $2 million fine for sales of reverse convertible securities
- 2011 – $2.1 million fine for failing to properly supervise the sale of exchange-traded funds.
- 2012 – $25 billion settlement for loan servicing and foreclosure abuses
- 2012 – $175 million settlement for discrimination of African –American and Hispanic mortgage lending
- 2012 – $6.5 million settlement for failing to research risks associated with mortgage backed securities
- 2013 – $8.5 billion to resolve claims of foreclosure abuses
- 2013 – $42 million settlement for not maintaining and marketing foreclosed homes in certain neighborhoods
- 2013 – $869 million repurchase agreement of loans that did not meet Freddie Mac guidelines
- 2014 – $4 million fine for allowing stock analyst to solicit business and offer favorable research of an initial stock offering
- 2016 – SEC charged Wells Fargo with defrauding investors on municipal bonds
- 2016 – $1.2 billion settlement for loans not meeting FHA guidelines
- 2016 – $3.6 million fine and $410,000 in restitution for illegal student loan servicing practices
- 2016 – $185 million fine for opening “fake” accounts in customers names that did not request them
- 2016 – Bank Executives ordered to pay back $116 million in compensation as a result of “fake” account scandal
- 2016 – $50 million settlement for overcharging borrowers on appraisals
- 2017 – 5.4 million in back pay & legal fees to the whistleblower of the fake account scandal
- 2017 – Accused of modifying mortgages of customers in bankruptcy without court approval
- 2017 – City of Philadelphia accuses Wells Fargo for targeting minorities with high cost mortgages
- 2017 – $80 million in unnecessary auto insurance added to accounts
As you can see, Wells Fargo has been “stellar” over the past 30 years. With so many fines, settlements, lawsuits, and accusations, should appraisers have a relationship, professional or personal, with such a “model” company? Take a look at the time line. They are being “stellar” more and more since 2009. Are your personal and business ethics a good match to have a relationship with Wells Fargo? Could your reputation be harmed? What is your liability in doing business with a company with a long history of wrong doing?
The decision is yours; make it an informed one.
|* Compiled from the following sources:
Wells Fargo: Corporate Rap Sheet
Wells Fargo may be in hot water again
Philadelphia accuses Wells Fargo of targeting minorities with high-cost mortgages
Embattled Wells Fargo now rocked by car insurance scandal
By John J. Appraiser, Certified Real Estate Appraiser – author requested to remain anonymous