Monthly Archives: February 2019

Wells Fargo faces class action lawsuit on loan officer compensation rules

United States District Court Judge Beth Labson Freeman granted class action status to a lawsuit where a loan officer is seeking backpay from Wells Fargo. (Ruling found here.)

Plaintiff James Kang worked as an home mortgage consultant in Wells Fargo’s Palo Alto, California, branch from October 2000 through May 2015, with a short break in employment in 2011.

According to his lawsuit, LOs at Wells Fargo are paid advances on commissions at a rate of approximately $12 per hour, but those advances are “clawed back” from commissions earned. Kang said this violates labor laws. He also claims that Wells Fargo does not pay for pre-approved time off, as advertised, and doesn’t pay LOs to attend meetings and training seminars.

“Kang asserts claims on behalf of himself and other California-based HMCs for: (1) failure to pay minimum wages; (2) failure to pay overtime wages; (3) failure to pay vacation time; (4) failure to pay all wages owed every pay period; (5) failure to pay all wages due at separation; and (6) violation of California’s Unfair Competition Act.”

Read on.

U.S. Banks Win $21 Billion Trump Tax Windfall Then Cut Staff, Loaned Less

  • Profits and payouts surge, but it’s a mixed picture for staff
  • The ‘full economic impact will take many years to observe’

By year-end, most of the nation’s largest lenders met or exceeded their initial predictions for tax savings. On average, the banks saw their effective tax rates fall below 19 percent from the roughly 28 percent they paid in 2016. And while the breaks set off a gusher of payouts to shareholders, firms cut thousands of jobs and saw their lending growth slow.

Read on.

U.S. regulator drops fine against Citi over fair-lending claims – sources

Sad…

WASHINGTON (Reuters) – A top U.S. bank regulator has decided not to fine Citigroup for discriminating against minority mortgage borrowers, dropping the public rebuke that some officials had sought, two people familiar with the matter told Reuters.

The decision is sure to be watched by consumer advocates who have questioned whether the Office of the Comptroller of the Currency (OCC) will enforce fair lending rules under the leadership of Joseph Otting, an appointee of President Donald Trump and former banker who has pledged to be friendlier to the industry.

Read on.