tom169

I've pulled out of a car deal for far less than $300.

Giantaxe

In CA, at least, you can get an escrow account removed if you can prove less than 80% LTV. Predictably, the lender may charge you a fee...

MMcD

So... assuming discussion of both commissions *AND* fees is permitted in this thread... and that treatment of their mortgage holders is what ultimately matters...

Here's an oldie but goodie posted by a Wells Fargo Mortgage holder on Wells Fargo's very own Discussion Board (hadn't known they had one before now)
It starts out like this:

I have a mortgage with Wells Fargo and tried to cash a check written on a Wells Fargo account but they wanted to charge me $7.50. Why?

Him : How can I help you today?

Me : I'd like to cash this check. ( Hand him the check and my ID )

Him : Do you have an account with us?

Me : I have a mortgage with you.


To read the rest of the unbelievable interchange click here:

https://www.wellsfargocommunity.com/message/15434#15434

It's what's known as Customer (Dis) Service

celticgrid

We mortgaged with WF. At closing, sitting in the attorney's office, the numbers did not add up. When challenged, WF stated the monthly payment included a payment to an escrow account for the house insurance. I told them I didn't want the insurance that way and to lower the monthly number. They insisted I had signed up to it. I'm guessing they not only would benefit from having my money in advance but also get commission from the insurance deal.

Quite a tussle. In the end I told them to produce evidence or lower the figure or I wasn't doing a mortgage with them. They removed the element from the monthly charge. In my view that was all about squeezing as much out of the mortgage deal as they could. Fair enough, they are a business, but they were out and out lying about me having signed paperwork for the insurance.

mrken30

Funny you say that, because it is a Californian based mortgage company. The company said if they had sold the mortgage direct, I could remove the escrow. However because I have a broker only product, my mortgage does not allow the removal of escrow. I just don't like the idea of them keeping thousands of dollars of my money in an account I don't have control over. With low interest rates it's not quite so much of an issue. The escrow payments are over 40% of my total monthly payments

tom169

I'm not sure what the big deal over escrow payments is? It's money you would have spent on the insurance and tax anyway.

celticgrid

If you are happy paying money in advance, up to a year ahead, then go for it. It's a free world.

tom169

Hardly paying money in advance - the government doesn't have that money until they issue the bill.

It's sat in an escrow account, in my case earning interest. I'd have been doing the same with it if an escrow wasn't in the picture.

mrken30

No all escrow accounts earn interest. Plus they request a buffer amount so there is almost always more in the account than is required, just in case the tax or insurance goes up by more than expected.

petitefrancaise

No.
Our escrow account has gone into negative due to property tax hikes. They simply adjust the following year's payments to repay the deficit and also to ensure that there are adequate funds to pay the new property tax. When you buy a house in Texas for the first year, the property tax is what it was assessed at on January 1st so it's probably going to be low. Then they figure out what you paid for it and adjust the following year's property tax. Since Texas is a non-disclosure state, nobody knows what the tax will be so you can't set an accurate escrow payment schedule. This year, I have protested my property tax and got a considerable reduction so my escrow account will be positive and my payment adjusted downwards next year.

mrken30

Keeping on topic, from the WF website, they want to keep a 10% ish buffer in the account.

"To help you plan for any potential increases, a minimum balance needs to be kept in your account at all times. It can be up to two months of escrow payments."

https://www.wellsfargo.com/mortgage/...culated-video/

MidAtlantic

You seem to want to bicker with anything about Wells Fargo.
Do you have a WF Mortgage?

petitefrancais has given her experience which is that her escrow account has gone negative.

Giantaxe

I don't see any bickering. Requiring a threshold above current costs is pretty standard practice. The fact that Texas in the first year (and possibly subsequent) of property ownership is apparently different hardly negates that even though it's certainly true that laws governing escrow accounts will be at the state level.

As for Wells Fargo, for me it comes down to trust. And I really don't have any for them given all the nefarious behaviour that has come to light about their practices.

petitefrancaise

Perception is a funny thing isn't it? I bet dealing with WF these days is a lot safer because of all the previous stuff coming to light. I'll make a bet other banks are as bad and they just haven't been caught yet.

We've been very happy with our WF mortgage. Good rate, organised well when we'd only been here for 6 months using all our french documents with no translation needed on our part. We certainly haven't been able to get a better rate and now I understand the process, I know why. Winner for us.

Giantaxe

I think that's certainly possible. But for me that is outweighed by the steady dribble of allegations that continue to light, which are usually greeted by WF saying that such practices are "contrary to their corporate culture" or some such. Pfft. Meanwhile, they've "clawed back" $69m of the $286m (!) that their former CEO earned between 2011 and 2016. I don't think he's going hungry.