Thread regarding Wells Fargo & Co. layoffs

Mortgage HMCs

It seems like there’s an explicit strategy to get rid of HMCs to lower the cost of loans. All mortgage referrals from branches now have to go through a centralized call center in many cases rather than being able to go through the local rep. Does wells want these people out?

Seems like an odd business decision given these people were on full commission and in some cases I’ve seen some very, very big revenue generators leave.

Almost like the company doesn’t care one bit about generating revenue? Thoughts?

by Anonymous
| 1885 views | | 7 replies (last August 15, 2022) | Reply
Post ID: @OP+1icqvkly
Comment! It's anonymous!

7 replies (most recent on top)

https://www.fa-mag.com/news/wells-fargo-plans-major-retreat-from-mortgage-business-it-long-dominated-69227.html

by Anonymous
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Post ID: @2oqn+1icqvkly

@ ehi+1icqvkly

So basically, this is Maxine Waters’ fault. I can get on board with that explanation

by Anonymous
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Post ID: @1hnt+1icqvkly

Changing the role of the HMCs has been a strategy in motion for at least 5 years.

The HMC needs to carry their own weight - I.e. generate their own book of business. That's the industry model, and WF is a laggard.

by Anonymous
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Post ID: @1jli+1icqvkly

Mortgage will be sold off.

by Anonymous
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Post ID: @1jrc+1icqvkly

We are not distancing ourselves from mortgage and we don’t want to get away from HMCs. The strategy makes a lot of sense to have self source HMCs bringing in new business and paying them more per loan for it. And then having bank HMCs focused on bank referrals and paying them less for it since it requires 0 self sourcing.

by Anonymous
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Post ID: @hlj+1icqvkly

Bank wants the reps to find their own bz, not take internal referrals. Has a direct impact on compensation. Of course they are going to leave. Very few in branch reps left and they cover a wide territory. Who gets damaged? The customer who has been provided an 800 number to call.

by Anonymous
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Post ID: @jnq+1icqvkly

I think they want to distance themselves from Mortgage. Remember a couple months back when Maxine Waters was writing letters claiming we were racists for approving fewer black loans than whites. Bill knows phase 2 of that is billion-dollar fines and throwing Charlie in front of a hearing. End result is higher rates for customers, shrinking the businesses and jobs, and extreme risk aversion.

by Anonymous
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Post ID: @ehi+1icqvkly

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