This morning, homeowners and Occupiers in San Francisco, Oakland, and Los Angeles will descend upon their local Wells Fargo banks to announce their latest effort to purify the big bank. Specifically, the groups want Wells Fargo to enact a broad principal reduction program and reduce short sales, SF Weekly reports.
According to the Alliance of Californians for Community Empowerment and the Home Defenders League, Wells Fargo remains the largest mortgage service provider in California and is currently in the process of foreclosing on more homeowners than any other bank in the nation. Wells Fargo has refused to hand out principal reduction, which is a standard element of loan modifications. Also, the dollar amount of principal reduction Wells Fargo is providing is "paltry," the groups say.
Loan modifications with principal reduction will help homeowners stay in their homes and stabilize our communities and our economy.
These distressed homeowners are pointing to a recent progress report from the Attorney General settlement that shows Wells Fargo's average amount of principal reduction is $74,837, compared to Bank of America's $192,090. By the way, Bank of America gave out nearly $1 billion more in principal reduction during in California than Wells Fargo did between 2008 and 2011.
"Wells Fargo is a community destroyer, with plans to kick over 3,500 families out of their homes next month. It's time for Wells Fargo to invest in making California stronger and healthier," says Ross Rhodes, a Wells Fargo borrower and member of the ACCE Home Defenders League.
The San Francisco event will start at 11:30 a.m. at 120 Kearny Street in the Financial District.