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Wells Fargo wants to steal your house !
What's wrong with these guys? we're giving them a free ramp (well,
not exactly free - you and I are paying for it, but that's another
story) and still that's not enough - now they're going after your
neighbor's house - Watch out ! Your house could be next !
Article from Insight News, published 03.12.03
online at http://www.insightnews.com/articles.asp?mode=display&articleID=499
ACORN charges Wells Fargo with predatory lending
As a Twin Cities coalition plans to launch a consumer education
campaign against predatory lending called “Don’t Borrow
Trouble”, a grassroots community organization says that one
of the lenders involved in the coalition engages in predatory lending.
According to Alton Bennett, an ACORN representative, “The
best way for Wells Fargo to prevent predatory lending would be to
not practice it.”
Minnesota ACORN charges that as a Twin Cities coalition plans to
launch a consumer education campaign against predatory lending called
“Don’t Borrow Trouble”, one of the lenders involved
in the coalition engages in predatory lending
Wells Fargo last week was presented with a “shark of the year
award” by Minnesota ACORN for its predatory lending. According
to ACORN, Wells Fargo uses fraud and deception to trap homeowners
into mortgages with high interest rates, excessive fees, and harmful
terms. ACORN cited the cases of a number of families who had been
lied to about the conditions of their loan and were refinanced out
of a good loan they had at a much lower interest rate with a different
lender to the new loan with Wells at a much higher rate, such as:
Nina and Leandro Mata are South Minneapolis homeowners who had
a loan with an 8% fixed rate and a monthly payment of $738, including
taxes and insurance. Wells Fargo Home Mortgage refinanced them and
gave them a new loan with an adjustable interest rate that started
at 12.15% and could rise as high as 18.25%. Their monthly payment
is now $1,144, this not including taxes and insurance, which are
an additional $160. Their $109,000 loan included almost $10,000
in closing costs.
Another, example is with Richard and Lynn Morneau who had a mortgage
at 7.875% interest and a total monthly payment of $724 including
taxes and insurance. Wells Fargo financial refinanced them and gave
them a new mortgage at 11.98% interest and a monthly payment of
$1,950, not including taxes and insurance which are an additional
$150 permonth . Their $162,651 loan included over $8,500 in closing
costs.
Birdell Beaks is a North Minneapolis homeowner who had a 7.25%
interest rate and a $320 per month mortgage payment, including taxes
and insurance, and always paid her mortgage on time. Wells Fargo
Financial refinanced her and gave her a new loan with an 11% interest
rate and an $880 monthly payment, not including taxes and insurance
which are an additional $120 a month. The loan for $51,394 included
$5,700 in closing costs.
After an article about ACORN’s accusations ran in the Pioneer
Press, the group says they received a number of calls from other
Wells Fargo customers who saw the article and felt they had been
ripped off.
ACORN and ACORN Housing have brought the above cases and others
to Wells Fargo‚s attention, but they say Wells Fargo has refused
to make any changes to the loans or talk to a housing counselor
about the borrowers.
In Minnesota and throughout the country, ACORN and its sister organization,
ACORN Housing Corporation, are engaged in a multi-faceted campaign
against predatory lending. The campaign involves outreach and education
to help homeowners avoid becoming victims of predatory lending,
counseling and assistance for people who have already fallen prey
to abusive practices, direct action protests against predatory lenders,
work for greater regulatory supervision by state and federal agencies,
and efforts for stronger legislation on the local and national level.
ACORN, the Association of Community Organizations for Reform Now,
is the nation's largest community organization of low- and moderate-income
families, with over 120,000 member families organized into 600 neighborhood
chapters in 45 cities across the country. Since 1970 ACORN has taken
action and won victories on issues of concern to our members.
For more information on ACORN www.acorn.org.
To receive updates on ACORN's work every two weeks go to www.acorn.org/getinvolved
Since 1991, AHC has helped over 1,000 low and moderate income families
purchase homes in the Twin Cities, and in 1999, AHC expanded its
efforts to also assist existing homeowners. For more information
visit www.acornhousing.org
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