IRVINE, CA (AttorneyNewswire.com) — July 6, 2010 — Michael Heid, co-president of
Wells Fargo Home Mortgage, recently offered testimony in a hearing conducted by the House Committee on Oversight and Government Reform. His testimony offered an explanation for the lack of loan modifications his employer has managed to approve since the institution of President Obama’s Home Affordable Modification Plan (HAMP).
Heid claims that borrower error is a main factor in Wells Fargo’s inability to approve
loan modification packages. Applications are often ineligible, completed incorrectly, or lack important documents. Despite the fact that much of the blame for his organization’s inability to modify loans has been passed to the borrowers, Heid did state that Wells Fargo will soon implement a policy requiring each homeowner to be paired with one Wells Fargo representative from the beginning of the loan modification process to the end, which is meant to alleviate some of the problems that borrowers face when they have to deal with multiple representatives distributing different information.
Timothy McFarlin, an Irvine, CA based foreclosure attorney, thinks Wells Fargo should accept more of the blame:
“The problem with Wells Fargo is that they have alienated struggling borrowers from day one. Their customer service agents have been accused of being rude and lacking the knowledge necessary to provide assistance to borrowers who are already in a fragile state of mind. Mr. Heid should try harder to put himself in the shoes of his borrowers. Mr. Heid should imagine what it would be like to face the loss of something near and dear to his heart, only to be faced with concrete deadlines, long and arcane application forms, rude customer service agents, and phone lines that always seem to disconnect before an answer to one of his questions has been offered.”
McFarlin believes that Wells Fargo should have offered one on one assistance from the beginning.
“If Wells Fargo noticed a problem of ineligible, incorrect, or incomplete application forms, they should have implemented a program to offer assistance to borrowers who needed help filling out the forms. Instead, they continue to toss a stack of papers at their borrowers and say ‘you figure it out’. That doesn’t sound the like action of a lender who wants to help their borrowers as much as Mr. Heid says he wants to help. This new idea of Wells Fargo to implement a one on one policy is coming too little too late, especially for the thousands of homeowners who have already lost their homes.
The timing of this implementation leads me to believe that Wells Fargo needed something to offer the House Committee in an effort to calm the controversy surrounding the lender. Hopefully the idea manages to work, but I’m not holding my breath.”
McFarlin recommends that borrowers have a legal professional review their loan modification documents prior to submitting them to their lenders to avoid a denial based on improperly filled out application forms. He also recommends that borrowers seek legal representation from an experienced foreclosure attorney. This not only releases the borrower from a tremendous burden, it will also help keep the lender honest.
About McFarlin & Geurts:
McFarlin & Geurts LLP is a full service law firm representing both businesses and consumers in California and throughout the United States. McFarlin & Geurts attorneys possess a keen sense of the law and markets, along with an astute business background that is invaluable in bankruptcy and business litigation. The McFarlin & Geurts team includes five leading attorneys and supporting staff to assure clients that their needs are placed at the forefront of any engagement. Legal representation and counseling is critical in our complex modern world, and McFarlin & Geurts is driven by a desire for excellence and commitment to provide quality, personalized service with integrity.
Media Contact:
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Tags: california, loan modification, McFarlin, real estate attorney, wells fargo
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