Do You Have an Account at Wells Fargo? If So, Then RUN!!

[sevlex]

Foreclosuregate is about to claim its first victim. I just told my wife to get her money out of WFC (again).

http://www.zerohedge.com/article/wells-fargo-prepares-tsunami-loan-repurchase-demands


Wells Fargo Prepares For Tsunami Of Loan Repurchase Demands
Tyler Durden's picture
Submitted by Tyler Durden on 10/17/2010 18:45 -0500

Zero Hedge has obtained Wells Fargo's brand new confidential protocol guidelines on loan repurchase demands by investors and mortgage insurers, sent out on October 15, and which becomes effective tomorrow. We have reproduced these below to see just how much more "streamlined" the process is, now that the bank is fully aware of the massive liability it faces as a "loan puttable" entity in a world that is suddenly replete with pervasive and rampant title fraud. Amusingly, in the CIM, Wells states: "Wells Fargo is committed – just like you are - to honoring contractual obligations with investors and mortgage insurance (MI) companies*. We want to ensure that the resolution process for Repurchase and Rescissions is as smooth and swift as possible." And even so, Wells continues to refuse to halt foreclosures knowing full well it would face billions in impairments should it do so voluntarily, even though as we confirmed Warren Buffett's pet bank was recently caught with its robosigning pants down as well (an event which was sufficient for everyone else to invoke a self-imposed moratorium, even Goldman, whose Litton Loan Servicing unit was rumored to have serviced about 4 or 5 mortgages in the past century... but not the California real estate monster)......

...Readers can be confident that over the weekend loan investors and mortgage insurers have received identical letters from all other banks as well. The next step: an attempt by every single mortgage investor and insurance company to get every single mortgage repruchased by the originating company on grounds of robosigning fraud.

The banks had their party of a lifetime, and now the terminal morning after hangover has commenced....


** rest of the story at the link **

I like this pithy comment that sums thing up nicely.

"Banks sold shit to investors as candy. Investors aren't all that thrilled, but figured they got the shaft. Turns out selling shit as candy isn't legal unless it's properly documented, conveyed and disclosed. The shit barometer in the Wells office is going off the charts as the winds of shit build into a category 5 shiticaine of forced poo repurchases."

[mriddick]

Nah are too big to fail...or are they :)

[tank_monkey]

Nah are too big to fail...or are they :)

Thanks :) looks like I'm pulling out my accounts anyway and shifting to Union bank.

[Penguin]

Now is this just effecting Well Fargo? Or is going to hit the loan industry in general? In the last couple of weeks Bank Of America stoped forclosing on homes at least temeraraly due to posible paperwrok errors. I am wondering if this may not be another colapse in the banking sector.

[swampdragon]

I have Armed Forces Bank.

[sevlex]

Now is this just effecting Well Fargo? Or is going to hit the loan industry in general? In the last couple of weeks Bank Of America stoped forclosing on homes at least temeraraly due to posible paperwrok errors. I am wondering if this may not be another colapse in the banking sector.

It's going to hit all the TooBigToFails. This has nothing to do with "paperwork errors". That is a red herring. The problem is systemic fraud with the loan origination, the loan processing, foreclosures and mortgage-backed securities.

Titles now have a "cloud" and it is entirely possible if you have a bought or sold a home in the last five years that nobody can prove who actually owns that title.

Investors who bought MBSs are now likely to force the banks to buy them back because the underlying mortgages were defective from the beginning. I don't think the Fed has enough $$ or chutzpah to try bailing the banks out again.

:shtf:

[Penguin]

Great what a mess this will be. I had wondered how they could do these morgatge backed secrity things since you can't really split a title between more than one investor. Something tells me this could get ugly.

[LAGC]

Guys, we do have the FDIC. So unless you have more than $250,000 socked away in one bank, the government insures your deposit. Its probably the main reason we haven't seen a total run on the banks since the Great Depression, during one crisis or another.

[mriddick]

I said during the first crash they should of done a bank holiday, closed the banks that couldn't pass muster and paid off the depositors with FDIC funds. We'd be in better shape today had they just closed the banks in the first go around.

[Oswald Bastable]

Guys, we do have the FDIC. So unless you have more than $250,000 socked away in one bank, the government insures your deposit. Its probably the main reason we haven't seen a total run on the banks since the Great Depression, during one crisis or another.

FDIC covers deposits in bank accounts. Savings, checking, CD's. FDIC has nothing whatsoever to do with mortgages...get a clue bread crumb brain.

And let's take a poll here...

Your bank fails next week, you need the money that was in your bank in two weeks for a utility payment to forestall shutoff.

Who here believes the feds are going to get it to you in time?

Hands???

Now let's talk about replacing money you earned, had and deposited — with money the government doesn't have, never earned, and will take from you and your children in the future to pay you back with when a bank fails...

[Oswald Bastable]

I said during the first crash they should of done a bank holiday, closed the banks that couldn't pass muster and paid off the depositors with FDIC funds. We'd be in better shape today had they just closed the banks in the first go around.

"I told you so." only works if it's tried and actually works. Until then it's just speculation.

[HDR]

"I told you so." only works if it's tried and actually works. Until then it's just speculation.


True and also hindsight is cheap..

[mriddick]

"I told you so." only works if it's tried and actually works. Until then it's just speculation.

I thought it was discussion, you know for a discussion board...think of it as more of a statement of what I said more then anything. :) Truth is I'm still pissed about the bank bailout and feel it was a huge mistake.

[Penguin]

Truth is I'm still pissed about the bank bailout and feel it was a huge mistake.

Same here.

[sevlex]

It's a poorly kept secret that the FDIC is insolvent. Aside from that, even if they can cover EVERYONE'S losses, how soon do you think you would get access to your money?

Can you go for two weeks? How about 30 days? People who have paychecks direct-deposited would be in a pickle. Same for folks who have automatic payments deducted from their accounts. If the bank is "frozen" how will the bills get paid? Will the creditors even be understanding?

I doubt the MSM will cover this until the SHTF. By then it will be too late for the individuals to deal with it. My wife is going to set up a new account with a credit union today and move most of her money over - leaving just enough in WFC to cover her automatic payments.

:piggy-bank:

[matshock]

It's a poorly kept secret that the FDIC is insolvent. Aside from that, even if they can cover EVERYONE'S losses, how soon do you think you would get access to your money?

Can you go for two weeks? How about 30 days? People who have paychecks direct-deposited would be in a pickle. Same for folks who have automatic payments deducted from their accounts. If the bank is "frozen" how will the bills get paid? Will the creditors even be understanding?

I doubt the MSM will cover this until the SHTF. By then it will be too late for the individuals to deal with it. My wife is going to set up a new account with a credit union today and move most of her money over - leaving just enough in WFC to cover her automatic payments.

:piggy-bank:

More like 6 months to years.

And the only money you'll be getting back will be the printed kind so it won't be worth nearly what is was when the bank stole it.

I've got one trigger- a double digit % drop in my bank's stock value in one week- then I divest.

Just use savings to pay off any debts except mortgage(s) get back to training for SHTF.

[El Laton Caliente]

Our primary is a military credit union and while we have a couple commercial bank acounts I'm not worried because we don't put more than we need for specific purchases or expensives in them.

My worry is that my company 401K is in Wells Fargo and there is nothing I can do about it except resign or pay the penelties to move the money...

[Moebrown20]

I've been with my credit union for years.
I thought about leaving, I'm happy I didn't!

[AK_Apostle]

When do we get to the part where the Banksters and politicians responsible for creating this mess start jumping out of windows in their $6000 suits and $1500 dollar shoes?

[mriddick]

It's a poorly kept secret that the FDIC is insolvent. Aside from that, even if they can cover EVERYONE'S losses, how soon do you think you would get access to your money?

Can you go for two weeks? How about 30 days? People who have paychecks direct-deposited would be in a pickle. Same for folks who have automatic payments deducted from their accounts. If the bank is "frozen" how will the bills get paid? Will the creditors even be understanding?

I doubt the MSM will cover this until the SHTF. By then it will be too late for the individuals to deal with it. My wife is going to set up a new account with a credit union today and move most of her money over - leaving just enough in WFC to cover her automatic payments.

:piggy-bank:

They managed to come up with a plan to give the bankers $850,000,000,000.00 in 3 days, you tell me it's going to take them months to get me my savings?...(sarcasm) :)

[matshock]

Our primary is a military credit union and while we have a couple commercial bank acounts I'm not worried because we don't put more than we need for specific purchases or expensives in them.

My worry is that my company 401K is in Wells Fargo and there is nothing I can do about it except resign or pay the penelties to move the money...

You can move the money to an IRA without tax penalty. You just can't cash it.

Another angle to consider is how your boss will react- they usually have a vested interest in keeping you in the 401K.

[El Laton Caliente]

You can move the money to an IRA without tax penalty. You just can't cash it.

Another angle to consider is how your boss will react- they usually have a vested interest in keeping you in the 401K.

But I have to quit the company or get laid-off to do that...

...and the boss, his boss and the VP all have 401Ks also...

[matshock]

But I have to quit the company or get laid-off to do that...

...and the boss, his boss and the VP all have 401Ks also...

That doesn't sound right- you *should* be able to transfer the money in your 401K account into an IRA at another bank at will with no penalties.

But like I said, that hurts your company a little so someone may get pissed if it's noticed.

My wife is still in hers because there is a company match- if they end that we will pull the plug on it.

[El Laton Caliente]

I have a 6% match, but I NEED the defered status on the taxes. I'm maxed out on 401K, nearly maxed out on my over 50 $6,000 catch up and just opened a IRA also. With the massive overtime I've been working the taxes are eating my lunch!

[matshock]

I have a 6% match, but I NEED the defered status on the taxes. I'm maxed out on 401K, nearly maxed out on my over 50 $6,000 catch up and just opened a IRA also. With the massive overtime I've been working the taxes are eating my lunch!

A traditional IRA is still a tax-deferred investment. You should be able to transfer funds from one tax-deferred investment to another without paying taxes.

I'm not pushing the idea- but know that it is an option.

[sevlex]

Bank of America is going to be the first to take a greasy shit....thanks to their acquisition of Countrywide:


Institutional Holders of Countrywide-Issued RMBS Issue Notice of Non-Performance Identifying Alleged Failures by Master Servicer to Perform Covenants and Agreements in More Than $47 Billion of Countrywide-Issued RMBS

PR Newswire
8:05 PM Eastern Daylight Time Oct 18, 2010
HOUSTON, Oct. 18 /PRNewswire/ --Today, the holders of over 25% of the Voting Rights in more than $47 billion of Countrywide-issued RMBS sent a Notice of Non-Performance (Notice) to Countrywide Home Loan Servicing, as Master Servicer ("Countrywide Servicing"), and to Bank of New York, as Trustee, identifying specific covenants in 115 Pooling and Servicing Agreements (PSAs) that the Holders allege Countrywide Servicing has failed to perform.

The Holders' Notice alleges that each of these failures has materially affected the rights of the Certificateholders under the relevant PSAs. Under Section 7.01 of the PSAs, if any of the cited failures "continues unremedied for a period of 60 days after the date on which written notice of such failure has been given ... to the Master Servicer and the Trustee by the Holders of Certificates evidencing not less than 25% of the Voting Rights evidenced by the Certificates," that failure constitutes an Event of Default under the PSAs.

In a previous release, the Holders emphasized their intent to invoke all contractual remedies available to them to recover their losses and to protect their rights. Kathy Patrick of Gibbs & Bruns LLP, lead counsel for the Holders, emphasized that the Holders' notice does not seek to halt loan modifications for troubled borrowers. Instead, it urges the Trustee to enforce Countrywide Servicing's obligations to service loans prudently by maintaining accurate loan records, demanding the repurchase of loans that were originated in violation of underwriting guidelines, and compelling the sellers of ineligible or predatory mortgages to bear the costs of modifying them for homeowners or repurchasing them from the Trusts' collateral pools.

Patrick also noted that the group of Holders that tendered today's Notice of Non-Performance is larger, and encompasses more Countrywide-issued RMBS deals, than were included in the August 20 instruction letter. When asked why the group of holders was larger, Patrick replied, "Ours is a large, determined, and cohesive group of bondholders. We have a clearly defined strategy. We plan to vigorously pursue this initiative to enforce Holders' rights."

Kaboom!! :smiley08:

[El Laton Caliente]

A traditional IRA is still a tax-deferred investment. You should be able to transfer funds from one tax-deferred investment to another without paying taxes.

I'm not pushing the idea- but know that it is an option.

I talked to our accountant and he said that if Wells Fargo goes belly up the 401K account would just be moved to another manager.