#Toau appraisal update#
#Toau appraisal mac#

The firings followed a round earlier this year, one of the people said. Many more took place in other areas of the country. Another estimate suggests that 12 to 15 people were fired across that region last week. In California, two mortgage retail sales senior managers in the San Francisco Bay Area, Jim Lew and Jarod Johnson, fired roughly five loan officers in their areas, according to the estimates of one loan officer with direct knowledge and a second who was briefed on the numbers. The practice is most common in refinancings, when there isn't a real-estate transaction that can be used to set the valuation. Or they may want to adjust an initial estimate of value that was too high. They may believe it would make their loan qualify for a waiver, which would in turn save the hundreds of dollars that an appraisal costs or speed up the refinancing process.

#Toau appraisal update#

Wells Fargo's current guidelines suggest that home values may be changed only with the customer's consent.īorrowers may have a number of reasons for wanting to update a home's value. In some cases, the changes slashed $1 million or more off home valuations in expensive markets. These waivers are legal, but Wells Fargo suspects loan officers may have wrongfully changed the field for a home's value in its database so the loan would qualify for the waivers without first speaking with the customer, according to conversations that managers have had with loan officers and other current employees who spoke with Insider.

#Toau appraisal mac#

Appraisal waivers give borrowers and their loan officers the right to bypass a home appraisal on mortgages originated by lenders such as Wells Fargo and sold to Fannie Mae or Freddie Mac if the loan meets certain conditions, according to half a dozen current and former Wells Fargo employees who spoke with Insider. Over the past week, Wells Fargo has fired dozens of loan officers across the US for what it has told them is improper use of the waivers. Wells Fargo is cracking down on what it alleges has been widespread abuse of so-called appraisal waivers among its mortgage staff.

The changes made the loans qualify for an appraisal waiver from Fannie Mae and Freddie Mac.

Wells Fargo said loan officers changed the number for a home's value without getting the borrower's consent.

Wells Fargo fired dozens of mortgage loan officers last week after investigations found they made allegedly improper changes to loan files.