Current debit card customers will not be affected by the changes. For now, these reward customers will still be able to continue to earn cash back, travel rewards as well as gift cards and gift certificates when they use their debit card for payment, among other things.

What is prompting the changes? Wells Fargo like other banks will soon need to replace revenue that they will be losing as a result of lower debit interchange fees. An interchange fee is the fee the bank charges the retailer when you use your debit card to pay for a purchase. The bank collects the fee and then shares the revenue with their partners including Visa and MasterCard.

According to data collected in 2009 from the Federal Reserve the average interchange fee collected from banks was 44 cents per transaction. While this number may seem small, the amount of revenue that is generated totals in the billions each year. Interchange fees are thought to currently generate approximately 16 billion dollars annually for the industry.

The revenue from interchange fees is more than likely about to take a severe hit, forcing banks to cut services and programs in order to save money. In December of last year the Feds proposed that the Interchange fee be capped at 12 cents per transaction. The rate change, if it passes, is scheduled to take place in July.

Meanwhile, Wells Fargo along with other banks are scrambling to find ways to cut expenses and make up for the revenue that they are about to lose. It appears that debit card rewards programs at Wells Fargo and other banks just may be seeing their demise.

Reference:

http://www.zacks.com/stock/news/50091/Wells+Fargo+Halts+Debit+Rewards

Wells Fargo (NYSE: WFC) Set To Stop Offering Debit Card Rewards was created by and is property of American Consumer News.

During 1997 through 2006, mortgage lenders created a variety of no money down type programs and “loan to own” mortgages which eliminated the strict requirements previously needed to get a mortgage. Individuals did not have to prove their ability to repay the mortgage or have sizeable downpayments during this period, and lenders like Bank of America, Wells Fargo and Citigroup lent millions of mortgages to people they knew had little chance of fully repaying them.

The original mortgage lending practices are returning, where borrowers are required to come up with a 20% minimum down payment to qualify. To contract the difference, in 2006 the average home down payment was 4% of the purchase price, while in 2010, across nine major United States cities the median down payment was 22%.

Lower down payments make it possible for more homeowners to get into homes, but it leaves them with costly mortgages they can’t afford and results in high numbers of foreclosures. Even individuals who have managed to avoid foreclosures through mortgage refinancing programs offered recently are experiencing long term financial distress – since they owe so much more than their homes are worth in today’s market.

If borrowers can’t come up with 20% or more for a down payment, they can look at loans backed by the Federal Housing Administration (FHA). Currently, these loans require 3.5% at closing, but come with private mortgage insurance expenses and higher than average interest payments. While it offers the opportunity to get into a home, the monthly payments will be higher.

Resource:

http://www.housingpredictor.com/2011/banks-want-more-money.html

Bank of America (NYSE: BAC), Wells Fargo (NYSE: WFC), Citigroup (NYSE: C) Penalties Likely to End “No Money Down” Programs was created by and is property of American Consumer News.

As reported in a recent Bloomberg article, “’I’m sure the banks are ready to put this past them and investors would certainly like to but this is not an issue that is going to go away,” Blake Howells, an analyst at Becker Capital Management Inc. in Portland, Oregon, said in an interview. “There will be more lawsuits that come down the road.” Becker Capital oversees $2.4 billion.”

The cause for concern stems from investigations into faulty foreclosure practices which may have resulted in the foreclosure of homes which might otherwise have been avoided. Bank of America, Wells Fargo and Citigroup, Inc are the three largest lenders under investigation. It is believed that actions taken by these lenders or in some cases the lack of action may have resulted in the foreclosure of homes that should have been preventable.

In October 2010, Bank of America stopped foreclosure proceedings in all 50 states, followed by a November 5^th announcement that 102,000 cases are being reviewed for faulty practices. This as a result of investigations which revealed lenders have been foreclosing on homes without the proper documentation which stated they had a right to do so.

When it is all said and done, the banks involved may end up paying $20 billion in penalties for servicing flawed loans. In addition to fines and penalties, each lender will also be faced with “significant legal costs” as investigations and lawsuits continue.

Fines Likely For Bank of America and Wells Fargo (NYSE: BAC, NYSE: WFC) was created by and is property of American Consumer News.

Rescue workers were contacted as soon as it was realized where the baby was. They had to pump oxygen into the air–tight vault. The rescue workers along with a lock safe technician were finally able to rescue the baby about four hours after she became trapped.

Mike Lee of the Rockdale County Fire Department said, “During close down this evening, customers had left the bank and the toddler walked off and walked into the vault and just about the time the vault closed with its time lock.”

Gene Wilson, Police Chief of Conyers, GA told reporters that it was a “very tense scene.” The rescue time was just about four hours long.

Ron Snively was the safe tech who was called to the scene to help with opening the vault. It was reported that he said that the call was a typical one, except of course for the child being locked inside.

“This is what I do all the time, other than a child being in there it was an easy job. You take the drill point and unlock it,” he said.

“She was crying before I got to her. She was scared because of the drilling noise and all that, but once I heard her crying I knew everything was okay, it was just a matter of time,” he added.

Jay Lawrence, a spokesperson for Wells Fargo bank said that even though the baby was trapped for four hours, during that time no danger was posed to her.

Police Chief Conyers said, “She’s great. I think she had cried for a while but when they went in there she was just laying there, she took the fellow that opened the safe, she took him a note, and this is one of those things, this is a happy ending, it’s nice to have one of these.”

Resource:

http://abcnews.go.com/US/trapped-toddler-rescued-bank-vault/story?id=13008684&page=1

Baby Rescued From Inside Wells Fargo (NYSE: WFC) Bank Vault was created by and is property of American Consumer News.

In recent months, some of the largest US banks have been doing the best they can to reassure investors on their portfolios. They have taken the stance that their costs in association with faulty foreclosures are within their realm, and investors should not be concerned.

“I’m sure the banks are ready to put this past them and investors would certainly like to but this is not an issue that is going to go away,” Blake Howells, an analyst at Becker Capital Management Inc. in Portland, Oregon, said in an interview. “There will be more lawsuits that come down the road.” Becker Capital oversees $2.4 billion.

In all 50 states, attorney generals have been investigating foreclosure practices to determine if they were legit. The investigation came after allegations that banks were foreclosing and seizing homes without going through proper foreclosure procedures. Homes were found to have been foreclosed on without proper documentation to do so.

US regulators from the Dept of Housing and the Treasury Department may be imposing up to $20 billion in penalties to the banks that were found to have followed unlawful foreclosure procedures. To date, banks have still not been informed of whether or not they will be part of the fines.

Litigation costs are expected to be high for both Wells Fargo and Bank Of America. Wells Fargo is estimating on the high end that their costs could be upwards of $1.2 billion and that figure is above and beyond the amount that they already have set aside in reserves. Banks of America estimates that their losses could be even higher and expects that they will come in right around $1.5 billion.

Resource:

http://www.bloomberg.com/news/2011-02-26/bank-of-america-wells-fargo-see-fines-actions-on-foreclosures.html

Wells Fargo, (NYSE: WFC) Bank Of America (NYSE: BAC) and Others Expecting Fines On Foreclosures was created by and is property of American Consumer News.

In addition to the money donated in 2010, Wells Fargo team members volunteered their time, with more than 50,000 hours spent helping rebuild and renovate 650 homes – many of which were abandoned properties or foreclosures. The homes were rebuilt with green components and energy efficiency in mind. Additionally, Wells Fargo donated 19 properties to the Habitat, for use in creating affordable housing opportunities.

About The Habitat for Humanity

The Habitat for Humanity International was founded in 1976 through an ecumenical Christian ministry. The organization is committed to eliminating poverty housing through rebuilding, rehabilitating or improving houses around the world. Since it’s inception, the Habitat for Humanity has improved more than 400,000 homes and created affordable shelter for more than 2 million people. You can offer volunteer time or money contributions to support their efforts by visiting Habitat.org.
Pledge for 2011

Wells Fargo’s Housing Foundation has made an additional pledge of $5 million for the Habitat for Humanity’s “Money for Muscle” team member volunteer program to be made during 2011.

About Wells Fargo

Wells Fargo & Company was founded in 1852 and is currently headquarted in San Francisco. They are a community-based financial service company that provides banking, mortgages, consumer and commercial financing, insurance and investments through more than 9,000 store locations and via the internet on wellsfargo.com and wachovia.com. They currently service one out of every three households in the United States.

Reference:

http://www.vadvert.co.uk/society/8344-wells-fargo-exceeds-8-million-commitment-to-habitat-for-humanity-in-2010-by-nearly-50-percent-providing-11-8-million.html

Wells Fargo (NYSE: WFC) Contributes $11.8 Million to Habitat for Humanity in 2010 was created by and is property of American Consumer News.

Wells Fargo came in second only to JP Morgan Chase in 2010 in terms of net income. The bank has reported a net income of $12.4 billion for 2010, surpassing their income from 2009. In 2009 the bank became the top mortgage lender and stayed on top in 2010. The bank originated $386 billion in home loans while competitors like Bank of America spent the majority of their time trying to recover from troubled mortgages.

“Wells is in a uniquely strong position to continue to outperform its peers,” says Andrew Marquardt, an analyst at Evercore Partners in New York. “They have weathered the storm far better than most.”

While other banks are still struggling with the impact of the mortgage crisis, Wells Fargo seems to have pushed through to the other side. This does not mean that they have not had their fair share of difficulties along the way. Back in 2008 when the bank bought Wachovia they inherited a portfolio full of option-ARM mortgages. These mortgages tend to have a history of high default rates. To date, Wells Fargo still has $90 billion worth of unpaid principals from this batch of loans, so they could still have difficulties with these loans down the road. When Wells took on the loans however, they did take the precaution of setting aside $26 billion to cover losses and they still have not exhausted these funds.

Looking ahead Wells Fargo is planning to branch out to new opportunities, possibly lending to mid size businesses. During 2011 the bank plans to increase its work force by 10% in the area of business lending. Currently they have 2,400 employees who work with businesses that have somewhere between $10 million and $500 million in revenue.

Additionally, the bank plans to begin offering a wider variety of other types of loan products and letting their local branch salespeople have the authority to make these loans. Currently Wells Fargo operates 187 commercial banking branches in locations around the US.

Reference:

http://www.businessweek.com/magazine/content/11_06/b4214043656537.htm

It’s Full Steam Ahead For Wells Fargo (NYSE: WFC) was created by and is property of American Consumer News.

The state Supreme Judicial Court has upheld a judge’s decision that two foreclosures were not valid since the banks could not reasonable proved they owned the mortgages. The reason was due to the inappropriate transferring of mortgages into mortgage-backed trusts.

Wells Fargo, the fourth largest bank in the US according to assets saw stocks drop as a result of the ruling. Such cases of bank and loan issues led to a nationwide investigation of foreclosures during the collapse of the housing market. The investigation was started after JPMorgan Chase & Co and Ally Financial Inc stated they would cease foreclosure repossessions in 23 states that have court supervision of home seizures. Bank of America also began freezing foreclosures in the US.

The updated decision follows one made by Judge Keith C Long, Massachusetts Land Court Judgge, who voided the foreclosures in March 2009. Judge Long found that the transfers of mortgages were done months after the house sales. Long refused to bank’s request to reverse his initial ruling in October 2009 after the banks fought back with documents showed the mortgages hand transferred back to them.

In light of the decision, it is expected that securitization documents be required to show the proper transferring of mortgages. There will need to be a process and documentation offering proof that assignments were made by a party that held the mortgage.

Neither US Bancorp or Wells Fargo representatives have commented on the judge’s decision in the Massachusetts case.

Wells Fargo (NYSE: WFC), US Bancorp (NYSE: USB) Loses Big-Time Foreclosure Case in Massachusetts was created by and is property of American Consumer News.

Even though many homeowners have looked into this trial modification plan, many have stated that is exceedingly difficult to actually obtain such a modification to their mortgage. Many homeowners have also complained of an extended stay in the trial modification and periods where they were seeking a more long term modification option.

Wells Fargo and Wachovia homeowners don’t have to feel like they have no options in this matter. They do still have opportunities which could offer them the capability to try to access a trial modification plan from the Making Home Affordable Program. This program could benefit those homeowners that are facing foreclosure on their home. The trial modifications from servicers such as Wells Fargo and Wachovia are being tracked with the Making Home Affordable Servicer Report. This report has indicated that there was an increase in the amount of homeowners that were using the trial modifications in October and November of 2010.

As reported on The Red White and Blue Press, “As of the October 2010 report, Wachovia Mortgage had 4,463 active trial modifications and Wells Fargo reported 11,297. Totaled, the trial modifications stood at 15,760 as of October, but according to the November 2010 report Wells Fargo/Wachovia had a combined total of 16,612 active trial modifications.”

There are still numerous homeowners that are frustrated with servicers such as Wells Fargo and Wachovia when it comes to plans that are offered from the Making Home Affordable Program. Homeowners are usually advised to consult their mortgage servicer for trial modifications and permanent modifications, but they are also able to consult with a reputable housing counselor from the FHA, HUD, and the Making Home Affordable Program.

Not all of the homeowners that are consulted with such services and go through the modifications will be able to avoid foreclosure. Many do get such from their mortgage servicer and or from the government to help to assist them in this time of need, so it is well worth it to seek this help and assistance when someone is in such crisis.

Wells Fargo (NYSE: WFC) Continues To Struggle Satisfying Homeowners With Make Home Affordable Program was created by and is property of American Consumer News.

The company was quick to say that they have been looking at this issue all year and that they are not changing the policy because of the pending legislation, but rather as a way to help meet customers’ needs. A Wells Fargo representative stated that, “We constantly are looking at our policies and looking at how our policies match up to customer needs.” The new loan provisions will take effect immediately on Friday of this week and will apply to all loans that are currently held by students.

To get the word out the company will be announcing the changes on their web site and contacting colleges and universities throughout the country to pass on the news to their students. They will not be sending out letters to their current loan holders but future loan applications will state the new policy.

It may be that Wells Fargo would have been forced to change their policy if the Senate votes yes on a proposed bill that has already been signed by congress. The Christopher Bryski Student Loan Protector Act Bill is waiting for a Senate vote and if passed would require all banks who issue student loans to forgive the debt at the time of the primary holders death of if they were proclaimed to be permanently disabled. There are many families throughout the country who after the death of their loved one, have been left with the burden of their loved ones’ student loan payments. This bill is in honor of one such family, the Bryski family who today struggles to pay back their son’s student loan debt which totals over $40,000.

Currently, student loan lenders seem to be split on the issue of whether or not student loan debt should be forgiven. One of the largest holder’s of student loans, Sallie Mae, has a forgiveness policy in place, while other companies do not. Student Loan Corp, another large lender does not forgive student loan debt and has voiced their opinion. Company spokesperson Mark Rogers stated, “A cosigner accepts responsibility for a loan if the other party is unable to pay, and they are expected to honor the contract as they would other obligations,”

Wells Fargo (NYSE: WFC) To Forgive Student Loans When Loan Holder Dies Or Becomes Disabled was created by and is property of American Consumer News.

The bank’s market value rose to $157.6 billion in December 2010 compared with JP Morgan’s stated value of $156.4 billion. When assets are taken into account Wells Fargo is ranked fourth behind, Bank of America Corp, JP Morgan and Citigroup Inc.

The acquisitions strategy used by Wells Fargo under the guidance of Chief Executive Officer, John Stumpf has been very successful. Under his guidance, the bank made over 55 asset purchases in the past five years. Bloomberg Data indicates they spent $12.7 billion on the takeover of Wachovia in October 2008. This raised the value of assets from 622.4 billion to $1.2 trillion in September 2010.

The value of Wells Fargo shares in December 2010 is around $30.02. A recent gain of 0.8% followed an 11% advance during the previous months of 2010. The largest shareholder in Wells Fargo is Warren Buffet’s Hathaway Group.

The Bank of America stock, during 2010, has not been as successful on the stock exchange. Currently valued at $126.3 billion it is significantly less valuable as a stock than Wells Fargo. The current Bank of America share is valued at $12.52. Citigroup is also more valuable despite its bail out by the US government. Citigroup is valued at $133.2 billion.

Although it is smaller than The Bank of America and Citigroup, Wells Fargo is a more popular stock possibly due to its acquisition program. Analysts feel Wells Fargo will boost its dividend to shareholders during 2011. They also see Wells Fargo shares will increase in value.

Recent payouts from Wells Fargo were paid on December 15, 2010. Series J shareholders received a quarterly cash dividend of $20. A quarterly cash dividend of $18.75 was paid to Series L shareholders.

Wells Fargo continues to rank No 1 in customer satisfaction surveys. This will support the share values. Carrie Tolstedt, head of Community Banking, said, “Providing a consistent and exceptional customer experience is one of the best ways we can achieve our company’s vision of satisfying all our customers’ financial needs and helping them succeed financially. As always, we will continue to look for ways to improve our service.”

Wells Fargo (NYSE: WFC) is the Most Valuable US Bank was created by and is property of American Consumer News.

Wells Fargo wants to help their customers stay on track financially, even during the holiday season. To help their customers do this, they have a new tool that is available for their customers to set their own monthly target goal for how much (or how little) they withdraw from ATMs.

Wells Fargo customers that want to activate this new service can do so easily the next time they use one of the Wells Fargo ATMs. When a customer swipes their debit card, they will see a yellow icon that will ask if they want to sign up for their “Cash Tracker.” From there, customers are able to set a target limit on the amount of money that they withdraw from ATMs each month. Wells Fargo helps their customers set an appropriate limit by showing them how much they have withdrawn from the ATM on the previous month as well as their average monthly amount of withdrawals over the last year.

After the Cash Tracker is activated, the customer will see the new Cash Tracker button on the menu screen when they use a Wells Fargo ATM. Pushing on this button, the customer can see how much they have withdrawn that month and how much they have left to withdraw that is based on their set limit. From this screen, users can also see their withdrawal history, and also change their target limit to withdraw each month.

The Cash Tracker program only works with the Wells Fargo ATMs, so transactions that the customer uses that are not part of the Wells Fargo ATMs, won’t show up as part of the customer’s withdrawal history. It also doesn’t track spending that is made with a debit card, it only tracks the amount of cash withdrawals. As of right now, the Cash Tracker also only can be viewed while using a Wells Fargo ATM machine.

Wells Fargo (NYSE: WFC) Allows Customers to Track Spending from their ATMs was created by and is property of American Consumer News.

Alicia Moore, head of Wells Fargo ATM Banking said, “Budgeting and money management are top of mind for customers today. We wanted to create a tool that would help our customers by tracking their ATM withdrawals for better budgeting,” She further commented, “Wells Fargo is committed to helping our customers succeed financially and we’re excited to offer this newest personal financial management tool.”

Customers using Cash Tracker, also receive notice of the amount withdrawn the previous month as well as their monthly average for twelve months. When established, a Cash Tracker button will be added each customer’s personalized Main Menu screen so the transactions can be seen visually. Wells Fargo customers will also be able to access the service via a ‘more choices’ button that leads to the “Set ATM Cash Tracker” button.

At present Cash Tracker is only available for Wells Fargo Customers and only accessed at Wells Fargo ATMs. ‘You Know Me’ ATMs, at Wells Fargo, also record their customer’s most used transactions to make individual banking faster and more convenient. Wachovia customers will have access to Cash Tracker once their bank is converted as a Wells Fargo outlet. It is planned to convert Wachovia outlets to Wells Fargo outlets throughout 1011.

Other management tools Wells Fargo offers its customers include a budget watch tool, savings plan tool, credit card management education plus the ‘Hands on Banking’ free education online. ‘Hands on Banking’ education online is for all ages and its focus is on teaching the basics of responsible money management.

Wells Fargo Chairman and CEO John Stumpf says Wells Fargo has been successful for 158 years. “I believe there are two important reasons. First and foremost, our people. We have the most committed, talented, experienced, innovative and caring people in our industry. The second reason is that for 15 years we’ve demonstrated that our business model — diversified financial services, not just banking — and earning all our customers’ business does work.”

ATM Cash Tracker Service for Wells Fargo (NYSE: WFC) Customers was created by and is property of American Consumer News.

Cara Heiden, co-president of Wells Fargo Home Mortgage said, “We have contended from the beginning that the challenges Baltimore faces cannot be attributed to the small number of loans Wells Fargo foreclosed in the city. Even the city has acknowledged that long-standing crime, unemployment and socioeconomic issues have contributed to the city’s problems. We remain committed to working with city and state leaders to help revitalize Baltimore by addressing issues related to abandoned properties. We also will continue to do our part to lessen the impact of foreclosures on communities in Baltimore and across the nation by working with our customers to reach affordable home payments wherever possible.”

When the lawsuit was dismissed in January 2006 for the first time, the City of Baltimore was given by the opportunity to file an amended narrower file addressing the economic impacts associated with the situation. The city filed again, despite the Judge not being sympathetic towards their position.

In September 2010, US District Judge J. Frederick Motz of Maryland, refuted the state’s lawsuit stating there was no connection between the financial problems of Baltimore and Wells Fargo’s mortgage distribution.

The Federal Court Judge J. Frederick Motz commented, “When considered against the background of other factors leading to the deterioration of the inner city, such as extensive unemployment, lack of educational opportunity and choice, irresponsible parenting, disrespect for the law, widespread drug use and violence,” Wells Fargo’s role was not proven.

“From the beginning, we have consistently maintained that Baltimore’s economic problems could not be attributed to the small numbers of foreclosures Wells Fargo has done in Baltimore,” said Cara Heiden, co-president of Wells Fargo Home Mortgage, in a statement she made after the ruling,

On The City of Baltimore’s behalf, their lawyer John P Relman said, “We are not saying that Wells is responsible for a catastrophe in Baltimore and all the deterioration of the neighborhoods. We are simply saying that they are engaged in illegal conduct.”

City of Baltimore Loses Lawsuit against Wells Fargo (NYSE: WFC) Again was created by and is property of American Consumer News.

The case centers on Wells Fargo’s backroom deal to wrest the failing bank from Citigroup after an initial deal had been put on the table to buy Wachovia. The bank had been ready to fail due to toxic real estate loans when it entered the U.S. government-backed deal with Citigroup. As a consequence, Citigroup turned around and sued Wells Fargo, an act which led to the current settlement.

According to the details of the lawsuit filed by Citigroup in New York Supreme Court, the company accused the executives at Wells Fargo and Wachovia respectively of a breach of contract. They were pursuing reparations totally $60 billion for damages, not relating to online currency trading.

All of this activity also served to highlight Citigroup’s instabilities in the wake of financial crisis. In fact, the company was in a vulnerable position at that time. Several weeks following the establishment of the original deal with Wachovia, Citigroup found itself in deep trouble. A number of bad investments accumulated and dealt a serious blow to the company.

During a time when so many businesses and major corporations were taking government bailout money, Citigroup was among the takers. In total, the company received $45 billion from the United States government. In the last couple of years, the government has gradually been cutting back the percentage of its stake in the big bank. At present, it still retains a 12 percent ownership in Citigroup.

Concerning the matte of the $100 million settlement, it should be noted that this amount represents only a tiny fraction of the total earnings and assets that is owned by the San Francisco-based Wells Fargo. Known as one of the largest banks in the United States, Wells Fargo earned a staggering $3.15 billion in the third quarter of 2010. As of September 30, the company showed $16 billion in cash on its balance sheet.

Despite the controversy surrounding the settlement the company is still making a strong market showing. As of Friday, November 26, 2010, Wells Fargo’s shares had increased by 2 cents for a $27.53 per share total in afternoon trading.

Wells Fargo (NYSE: WFC) Will Pay Citigroup $100M In Lawsuit Concerning Wachovia was created by and is property of American Consumer News.

As stated on Market Watch, “During the holiday season, especially, people need to know what to look out for and how to properly protect themselves,” said Lisa H. Robinson, senior vice president, Head of Risk Management, Wells Fargo Internet Services Group. “By taking simple precautions, shoppers can reap significant benefits when it comes to fraud prevention.”

Before shopping online, in a store, or on a mobile device, make sure to review the following tips from Wells Fargo:

• Monitor your purchase activity and remember to review your statements regularly, especially when doing extra shopping, such as for the holidays.
• Enroll in mobile banking so you will be able to view your account on the go.
• Sign up for transaction alerts for your checking account, debit card, and credit card. That way you’ll know right away if it is being used for something you did not permit.
• Don’t “over-share” personal information on social networks. Avoid sharing your full birthday, place of birth, children’s names, name of schools attended, pet’s names, etc. Never share your mother’s maiden name, social security number, phone number, address, or the username and password for accounts (including e-mail). This information could be collected and then used for fraudulent use to attempt illegal activity in your name.
• Be careful of holiday specials and offers that are sent to you that request your personal information. If you are in doubt if it is real, call the number from the main website (not something included in the e-mail) and ask them about it.
• Update your computers with anti-virus and anti-malware updates. Don’t download or install suspicious attachments or plug-ins.
• When shopping online, be sure that the store’s website address for the purchase starts with “https.” The “s” makes sure that the information you send will be passed in a secure manner.
• Go paperless for your statements. Some fraudulent activity happens due to criminals stealing your statements right from your mailbox.
• Make sure that you are covered in case someone steals your account information. Contact your banks and credit cards if you don’t know their policy on this matter. Wells Fargo guarantees that their retail customers are covered for 100 percent if their account information is stolen and fraudulent charges appear on their account.
• Know what you’re carrying in your purse and/or wallet. If in the event it is stolen, you need to know what was stolen and who to call. Photocopy your personal and financial information that could be stolen, and keep it in a safe place at home.

As stated in Market Watch, “We encourage our customers to take advantage of Wells Fargo’s tools and services, such as alerts, mobile banking, and online banking, to monitor their accounts the way they want,” said Robinson. “No matter how people choose to shop, keep these tips in mind to help safeguard your information.”

Fraud Prevention Tips for the Holiday Season From Wells Fargo (NYSE: WFC) was created by and is property of American Consumer News.

Poor real estate loans had caused Wachovia to agree to Citicorp purchasing it. The purchase was supported by the U.S. Government. The Citigroup purchase was undermined by Wells Fargo, who offered Wachovia a larger settlement. Wachovia settled on the Wells Fargo deal.

The merger between Wells Fargo and Wachovia meant the size of Wells Fargo has doubled. It is now the largest retail banking network in the U.S.

Citigroup decided to sue Wells Fargo accusing them and Wachovia for breach of contract. Citigroup claimed $60 billion damages. The case was settled in New York and Citigroup received a $100 million settlement. This settlement also wiped out the multiple lawsuits Citigroup had brought against Wells Fargo and Wachovia. All banks said this settled the matter.

Anton Schutz, president of Menton Capital Advisors in Rochester, New York which had investments in both banks said, “This could have dragged on forever, and sometimes I think you’re better just settling and moving on,”

“If Citigroup had gotten Wachovia, the financial returns would have been significant. But it might have made it harder for Citi to do some of the things they’re doing now, like getting leaner.”

Losing the Wachovia deal showed Citigroup’s lack of power over the situation. Citigroup’s financial vulnerability, from poor investments, came to light in the weeks following the collapsed deal with Wachovia.

The financial vulnerability of Citigroup was such that it needed funds from the U.S. Government to save it from insolvency. The bailout amounted to $45 billion. The U.S. government in November 2010 still owns 12% of Citigroup.

The payout to Citigroup by Wells Fargo, was not a huge one, for Wells Fargo one of the largest banks in the U.S. Wells Fargo at the end of September 2010 had reported earnings in that quarter of $3.15 billion. Its shares were valued at around $27.53.

Citigroup (NYSE: C) and Wells Fargo (NYSE: WFC) Settle Dispute over Wachovia was created by and is property of American Consumer News.

Throughout the sweepstakes period, personal and business customers from Wells Fargo and Wachovia who sign up for online banking, sign into an online banking session, and/or switch to online delivery of their statement, will be automatically entered into the sweepstakes for a chance to win the grand prize of $50,000. There will also be fifty customers that win $1,000 each.

As stated in Market Watch, “One of Wells Fargo’s strategic initiatives is to allow customers to transact anytime, anywhere in order to meet their needs. Through online banking, our customers can view their current available account balances, pay bills, and transfer funds between most accounts,” said Stephanie Smith, executive vice president, Wells Fargo Internet Services Group. “Online statements provide the added benefits of organization and convenience, fraud prevention, reduced paper use, and functioning as paper statements for record-keeping and tax purposes.”

Customers that decide to be environmentally friendly and switch to the online banking to view their statements online only, can access their Wells Fargo statements from a secure online banking session anytime they want. These online statements are able to provide a clear and concise summary of their recent account activity so that customers are able to pinpoint the information they are seeking right away.

The online only statements are available for checking accounts, savings accounts, mortgages, credit cards, home equity lines of credit and loans, student loans, and personal loans. Wells Fargo and Wachovia business customers are also able to access online only statements for checking, savings, credit card, and their business line of credit. Wells Fargo also sends out an e-mail to the online only statement customers by e-mail when a new statement is ready.

Using an online only statement is helpful to reduce potential mail fraud and identity theft. As reported in Market Watch, “According to the Javelin Strategy & Research 2010 Identity Fraud Survey Report, some thieves still get their information the old-fashioned way: by stealing bank or credit card statements from the mailbox.”

No purchase or payment is necessary to enter the sweepstakes to win the Online Banking and Online Statements sweepstakes. For more information on the sweepstakes visit: www.wellsfargo.com/fallsweeps and www.wachovia.com/fallsweeps from 12:00 a.m. Pacific Time (PT) on 10/1/10 to 11:59 p.m. PT on 12/15/10 (“Promo Period”). The drawing for the 2010 sweepstakes will be held on or about February 1, 2011 to award 51 customers. For the Official Rules go to: https://www.wellsfargo.com/wfonline/statements_fallsweep/rules.

Wells Fargo (NYSE: WFC) Giving Customers a Chance to Win $50,000 was created by and is property of American Consumer News.

Executive vice president of Wells Fargo Internet Services Group, Stephanie Smith said, “One of Wells Fargo’s strategic initiatives is to allow customers to transact anytime, anywhere in order to meet their needs. Through online banking, our customers can view their current available account balances, pay bills, and transfer funds between most accounts. Online statements provide the added benefits of organization and convenience, fraud prevention, reduced paper use, and functioning as paper statements for record-keeping, forex and tax purposes.”

The opportunity to win one of the cash prizes is available until December 15^th 2010.

The benefit of receiving online statements is they are easy to read and understand and are brief summaries of what activity has been undertaken in relationship to the account. The account holder is able to scan for any information they need. They can also order online statements for savings accounts, checking accounts, mortgage information, credit card purchases and payments, home equity lines of credit and loans, personal loans and student loans.

The bank customers who accept paperless statements can access them securely and safely when they sign in for an online banking session. An email is sent to all online customers when their statements are ready. Online statements can also be helpful in preventing mail and identity fraud.

It is still possible for thieves to get people’s personal and banking information from their letter boxes. This has been verified by the Javelin Strategy and Research 2010 Identity Fraud Survey Report. Wells Fargo free online banking and online statements are available 24/7 unlike the post.

Wells Fargo believes in the necessity to protect the environment and paperless statements can help to do this. Mary Wenzel, director of Wells Fargo Environmental Affairs said, “We already reduced our greenhouse gas emissions (GHG) by seven percent in 2009. We’re on our way to achieving the GHG reduction goal of 20 percent below 2008 levels by 2018 by focusing on energy efficiency, optimizing space, and online and mobile banking services.”

There is no purchasing necessary to enter the sweepstakes. The websites to visit for the official rules are: www.wellsfargo.com/fallsweeps and www.wachovia.com/fallsweeps. The prizes will be awarded in early February.

Wells Fargo (NYSE: WFC) and Wachovia Announce Online Banking and Statements Sweepstakes was created by and is property of American Consumer News.

Wells Fargo’s, ‘Leading the Way Home Priority Markets Program’ have a number of innovations. Amongst them are providing workshops for residents in areas with many mortgages in default, an education program that teaches credit management, mortgage strategies and the responsibility involved in repaying loans. Company representatives are also working with nonprofit organizations and supplying grants for assistant programs. Assessing housing in many areas, is also undertaken, to see what can be done to salvage many situations.

The co-president of Wells Fargo Home Mortgage, Cara Heiden, said, “From the beginning of the housing crisis, we have joined with numerous communities and organizations to help preserve and advance homeownership, assist struggling homeowners, and help stabilize communities hard hit by foreclosures. From January 2009 through August 2010, Wells Fargo has helped more than 2.3 million households with mortgage payment relief through its refinancing and modification programs.”

“Transfer of foreclosed properties for redevelopment—Wells Fargo was the first mortgage servicer to partner with the National Community Stabilization Trust (NCST) to assist local governments and nonprofits in acquiring foreclosed properties for redevelopment. Wells Fargo’s Housing Foundation, in partnership with Wells Fargo Home Mortgage, also donates foreclosed properties, or offers such properties at a reduced price, for redevelopment and resale. In addition to properties transferred through NCST, Wells Fargo has discounted or donated more than 2,000 properties to nonprofit organizations and government entities in 2009 and 2010.”

Wells Fargo has also donated to Habitat for Humanity International. A grant of $8 million was donated early in 2010 for their Neighborhood Revitalization program. Cara Heiden stressed, “From the beginning of the housing crisis, we have joined with numerous communities and organizations to help preserve and advance homeownership, assist struggling homeowners, and help stabilize communities hard hit by foreclosures. From January 2009 through August 2010, Wells Fargo has helped more than 2.3 million households with mortgage payment relief through its refinancing and modification programs.”

Wells Fargo (NYSE: WFC) Helps People Keep a Roof over Their Head was created by and is property of American Consumer News.

Wells Fargo became the number one SBA 7(a) lender in the country by issuing $871 million in loans. This number was five percent higher than it was in 2009, when it was at $827 million.

Antonio Zate, head of Well Fargo’s SBA Lending Division in greater Los Angeles, had this comment: “The changes that came about as a result of the recently passed Small Business Jobs Act will help America’s small businesses growth, and we stand ready to do our part by providing the credit to meet their financing needs.”

Zate expressed the desire of Wells Fargo to maximize its status as the top SBA lender in dollars to extend viable financing to as many small businesses as possible, provided they are qualified borrowers. He acknowledged that the success of businesses remains very important to the overall economy. Zate said, “Wells Fargo’s position as No.1 SBA lender gives us an important opportunity to support an economy recovery.”

In another report released by the Community Reinvestment Act, date released for 2009 showed that Wells Fargo also ranked as the top California small business lender in terms of loans below the $100,000 mark and total business lending below $1 million categories.

Wells Fargo & Company, headquartered in San Francisco, has been a national, community-based financial services organization since 1852. It currently holds in the neighborhood of $1.2 trillion in assets. The company operations a diversified umbrella of services include banking, insurance, investments, mortgages, and commercial and consumer finance. It operates using wide variety of channels to deliver quality services both in the United States and internationally. There are more than 278,000 active team members.

Additionally, Wells Fargo was listed at number 19 on a list of Fortune Magazine’s 2009 rankings for America’s largest corporations. It is a dynamic business with a reputation as a leading lender to women and diverse-owned businesses. It makes use of the latest technology to provide customers with online resources, including webcasts and topical videos. The company is ready to offer sound advice to business owners in order to help them succeed financially.

Wells Fargo (NYSE: WFC) Tops SBA List of Top Lenders With A $59 Million Loan To California Small Businesses was created by and is property of American Consumer News.

Like other lenders, Wells Fargo failed to set systems in place that would ensure all paperwork was thoroughly checked. The company joins many others in the industry with paperwork errors that prevent forced sales of mortgaged property going ahead.

Wells Fargo is one of America’s biggest mortgage lenders and the failure to have all paper work checked is a serious anomaly. The company at present is preparing around 55,000 foreclosures in 23 states. It promises to fix the mistakes associated with these foreclosures.

The bank announced that the paperwork errors related to the ‘final step’ of filing. Foreclosure papers included final reviews and notarizations of documents. Plans are for the documents in question to be resubmitted in November 2010.

The mistakes, the company claims, are technical and will not stop the foreclosure process from continuing. In a statement, Wells Fargo says it doesn’t, “believe that any of these instances led to foreclosures which should not have otherwise occurred.”

John Stumpf, CEO of Wells Fargo, claims the bank is “confident that our practices, procedures and documentation” are accurate. No one at Wells Fargo would comment whether the bank had used ‘robo-signers’. Robo-signers signed an enormous number of legal documents without checking for errors.

Wells Fargo now has to now deal with slowing of foreclosures, lawsuits brought by homeowners and legal strategies developed by mortgage investors in the hope of getting their investments back.

David Grais, an attorney representing mortgage investors said, “None of these avenues of litigation is for either the faint of heart or for those with short attention spans.”

It will not be easy for investors to prove that any bank did not act in the best interest of their customers.

Wells Fargo spokeswoman, Terri Schrettenbrunner, who would not discuss the type of errors Wells Fargo was dealing with, said, “We found human errors, and we are fixing those errors,”

Wells Fargo has had two of their employees question their foreclosure procedures. One of whom claimed she signed around 300 to 400 foreclosure documents on a daily basis.

The issue of paper work and legal procedures and how they were handled in hundreds of thousands of situations is being investigated by attorney generals in each of the 50 states.

Wells Fargo (NYSE: WFC) Foreclosure Paperwork Also Flawed was created by and is property of American Consumer News.

The Des Moines-based mortgage unit for the big bank planned to re-file documents for 55,000 individual cases by the middle of November. At the same time, the company noted that not every one of those posted cases contained errors, but no one listed how many did.

Representatives have stated that the mistakes on the foreclosure forms were purely technical in nature. For instance, there were several problems that occurred during the final review of foreclosure affidavits and notarizations. In these cases, the documents did not fulfill the strict guidelines required by current procedures.

Wells Fargo has said it wishes to submit supplemental affidavits to replace those that were incorrectly issued.

This event has not affected Wells Fargo’s plans to maintain foreclosure processing. It did not join other major banks like Ally Financial’s GMAC and Bank of America in suspending foreclosure filings.

Teri Schrettenbrunner, a Wells Fargo spokeswoman had the following to say: “We don’t believe that there are instances in which the foreclosures would not have occurred otherwise.”

The foreclosure documents will be re-filed in a total of twenty-three states, including Iowa, where a judge must approve all foreclosures.

Wells Fargo CEO John Stumpf said that he was confident his company’s current practices, procedures and documentation were correct in a conference call with certain investors.

According to depositions given by two Wells Fargo employees, there are reasons to question the company’s foreclosure practices. One employee, working in Fort Mill, South Carolina gave testimony back in March that she had signed upwards of 300 to 500 foreclosures on a daily basis. Another employee stated that he had personally verified only dates on around 150 documents he signed each day. He relied on the help of co-workers in order to verify the information was accurate.

As a consequence of these depositions, the attorney generals in all fifty states have began joint investigates into Wells Fargo’s practices. Both the paperwork and the legal procedures are being evaluated to determine whether they were handled appropriately in thousands of cases. The attorneys generals are planning to meet lenders regarding the probe. Loan servicers were also contacted as well in conference call settings. Iowa’s own attorney general, Tom Miller is heading the multi-state probe.

A spokesman for Miller, Geoff Greenwood, was able to confirm certain meeting dates but was unable to comment on the identities of the banks expected to show up. He also stated that Miller’s office was currently examining Wells Fargo’s disclosure information.

Greenwood added, “We will initiate communication with Wells Fargo, just as we have with other companies that have disclosed flaws in their foreclosure process.”

The company has completed over 500,000 mortgage loan modifications (556,868 to be exact). This figure included $3.5 billion in principal forgiveness. Additionally, Wells Fargo has refinanced almost 1.9 million mortgage loans since January of 2009.

Wells Fargo (NYSE: WFC) Claims Responsibility For Errors On Foreclosure Paperwork was created by and is property of American Consumer News.

Wells Fargo is established throughout the United States as a community based financial services company. It provides a range of Financial Services from its more than 10.000 banking stores and 12 000 ATMs. The company also provides internet services and international distribution points as well.

Wells Fargo employs more than 278,000 people and claims customers in one out of three US households. Specific services provided, include mortgages, investments, insurance and commercial and consumer finance.

Wells Fargo’s aim is to satisfy the financial needs of each customer. To support this vision the Company has developed a new customer service plan. It is aware of the importance of educating customers about the role of credit in their lives and so ensuring they make wise financial decisions.

The recently launched educational video series coupled with an online quiz is aimed at providing customers the knowledge they need about their own credit situation as well as pointing out the credit services available. Wells’ Fargo employees are featured in the videos. The video information includes what lenders are looking for as well as the information about how credit works.

Jamie Moldafsky, an executive vice president in Wells Fargo’s Home Equity Group says, “Credit and how one qualifies can be a mystery to a lot of people. With today’s economic challenges, it’s more important than ever for consumers to understand credit and debt management. We have developed numerous tools for consumers to learn more about their credit, so they are better equipped.”

The videos are produced in English and Spanish.

The English Videos can be downloaded from:

Smarter Credit^TM Center (https://www.wellsfargo.com/smarter_credit/index).

Financial Education Center (https://www.wellsfargo.com/financial-education/index), and YouTube channel (http://www.youtube.com/user/wellsfargo).

The Wells Fargo Spanish videos can be downloaded from:

YouTube channel (http://www.youtube.com/view_play_list?p=2F9C8EA9595D90FE

To complement the online education Wells Fargo employees are also moving into communities and talking to individuals and families about managing credit and personal finances.

Because it has had a conservative home lending policy Wells Fargo was not badly hurt by the mortgage policy crisis of 2008.

Wells Fargo joins Bank of America and JP Morgan Chase to control more than 30% of bank deposits due to its purchase of Wachovia Corporation from Citicorp.

Wells Fargo’s (NYSE: WFC) Plan to Educate Customers was created by and is property of American Consumer News.

Now the bank will impose stipulations on basic checking accounts including minimum balance requirements and out-of-branch-only banking. The move by Bank of America may be a sign of things to come across the board at other banks. Free accounts may soon become a thing of the past. Wells Fargo was the first bank to stop free checking.

Bank of America launched the eBanking account service in August. This service allowed customers who banked solely online to have a free checking account. The stipulations with this banking program is the free account would require a $8.95 if they needed to access assistance from a branch teller or wanted to obtain paper statements.

Other changes have been instituted by Bank of America. An Emergency Cash option was made available to customers who wanted to make ATM withdrawals which exceed their current account balance. The charge for the service is $35 and the customer must directly except the charge before accessing the cash, unlike with a overdraft fee.

Not all banks have ceased their free checking options as of now. There are still banking institutions trying to keep up with free checking account offers including but with the need to make up profits since the recent changes made in the banking industry, it is likely consumers will have a harder time finding a new checking account provider totally free of charges.

Bank of America (NYSE: BAC) Cuts Out Free Checking Offers was created by and is property of American Consumer News.

This agreement ends a state wide investigation of some of the mortgages sold by Wachovia Corp., Golden West, and World Savings, that may have violated the Consumer Fraud Act.

These companies were purchased by Wells Fargo in 2008. They were selling so-called “Pick-a-Payment” mortgages by advertising low monthly payment options. The companies failed to warn their borrowers that the minimum payment option was not covering the interest on the loan, which then resulted in an increase in the loan’s principle balance. This then resulted in those consumer’s monthly payments rising to higher amounts that were not anticipated by the borrower. According to the Attorney General’s Office, this caused many borrowers to lose their homes.

Up to $2 million of the $3.98 million that Wells Fargo will pay the state of New Jersey will be distributed as restitution to the consumers with Pick-a-Payment mortgages that became delinquent and had to leave their homes due to a foreclosure between January 2, 2005 and December 18, 2010. The remaining amount will be used for programs to combat mortgage and loan modification fraud, and to help prevent foreclosures.

Wells Fargo is also forgiving accrued interest and late fees for those eligible borrowers that became delinquent on their Pick-a-Payment mortgages. Depending on the circumstances of the case, Wells Fargo is also allowing principle forgiveness, loan extension, additional time to pay off the principle, and interest rate reduction. Wells Fargo is estimating that more than 900 New Jersey borrowers will be eligible for the mortgage modifications.

As stated on Law.com, “The companies selling the mortgages failed to tell borrowers that choosing the minimum-payment option could lead to a “treadmill of debt,” Attorney General Paula Dow said in a statement. “In many cases, those who seek out these ‘minimum payment’ option mortgages are the very people who have the most limited financial resources,” she continued. “Signing them up for loan terms that sound attractive without warning them of the potential financial pitfalls is wrong, and we intend to hold companies that engage in such conduct accountable.”

This agreement with Wells Fargo in New Jersey is similar to the ones it reached with attorneys general in Arizona, Colorado, Florida, Illinois, Nevada, Texas, and Washington.

Deceptive Mortgage Claims Will Cost Wells Fargo (NYSE: WFC) $71 Million was created by and is property of American Consumer News.

Wells Fargo Securities is meant to act as a dealer of International Bank for Reconstruction and Development notes (or World notes) issued through the Global Debt Issuance Facility. The direct recipients of these notes include customers who receive them via Wells Fargo Investments and Wells Fargo Advisors, the company’s brokerage firms.

Initially launched in the second quarter of this year, the measure has already raised around $120 million to replenish the World Bank. Thus it has helped fund the stated objectives of the organization, such as improving global standards of living, health, education, as well environmental protection among others.

Kenneth Lay, the Vice President and Treasurer of the World Bank, made a few comments about the situation, stating that the company was happy to be offering more opportunities to reach investors in the United States. Additionally, he was optimistic about the opportunities to finance bigger projects geared towards achieving sustainable improvements to the standards of living in the global community. He and said it was help that the measures were giving the World Bank more visibility in the U.S.

The name of the game has been to create a reasonable program to distribute investment opportunities to a wider cross section of Wells Fargo customers, while also providing necessary funds to the World Bank. The latter point is looked upon by some as a very noble gesture.

The topics of sustainability and environmental protection are definitely in the social consciousness and will continue to play an increased role as time goes on. The World Bank stands to benefit in a number of ways. Those who are interested in finding out more about this situation – especially the World Bank bonds and the Global Debt Issuance Facility may do further research online or by visiting their website at www.worldbank.org/debtsecurities.

Wells Fargo (NYSE: WFC) Securities and the World Bank Announced Program For Investment Opportunity Expansions In U.S. Retail Sector was created by and is property of American Consumer News.

The Bank of America (NYSE: BAC) joins JP Morgan Chase and Citigroup, who have reviewed their mortgage lending policies. The fallout from ill advised mortgages, especially those set up by brokers, has resulted in multitude buyback requests, law suits and fraud accusations against banks.

Barbara Desoer, head of Bank of America’s mortgage division, said in a statement, “By exiting the first mortgage wholesale channel, we can direct critical operational resources to further enhance our capabilities in direct-to-consumer channels. This is an investment in strengthening our competitive position.”

Large servicers like Bank of America, are also receiving pushback from owners, investors and regulators due to mistakes in loan setup procedures. Paperwork errors have led to a raft of litigation. Fannie Mae, Freddie Mac, JP Morgan, GMAC Mortgage have pushed back loans to servicers over the past year.

Bank of America halted foreclosures in dozens of states over the weekend because of the litigation associated with paperwork errors. JP Morgan and GMAC Mortgage did the same.

Large lenders including Citi, U.S Bancorp, HSBC and PNC Financial Services are reportedly scrutinizing their foreclosures at the regulator’s request.

Central to the banks’ buyback mortgage problem, is the so-called “originate to sell” model. Mortgage originators took no responsibility after loans were in place. As many loans as possible were pushed through without the paperwork being checked. Investors in mortgages have used paperwork errors as a reason why service providers must buy back debt.

Foreclosures are not happening due to the equally hasty and sloppy default servicing model. Banks employed thousands of employees who were inadequately trained, to move borrowers through the loan application process.

Executives had not scrutinized the information in mortgage documents due to the overwhelming number of applications. Homeowners are now contesting the seizure of their homes in court, saying banks have seized homes improperly.

There is now only one major money-center bank, the San Francisco-based Wells Fargo, which is continuing with foreclosure proceedings.

Bank of America (NYSE: BAC) Drops Mortgage Brokers was created by and is property of American Consumer News.

As stated on Stock Briefings, “according to Jay Lawrence, Southeast communications manager for Wells Fargo (NYSE:WFC), as the ‘conversion week’ begins, signage will begin to appear inside former Wachovia Bank branches in the area.”

Wells Fargo plans to have the weekend of October 2-3 to have the exterior signs at the former Wachovia branches changed to the new Wells Fargo signs. They even plan on having the sign on the former Wachovia Tower changed and lit up to the Wells Fargo sign by then too.

Some Wells Fargo branches, such as those located in the Jackson metro area are being converted to the new Wells Fargo systems starting this weekend. As stated in the Clarion Ledger, “Area bank President Leigh Collier said the conversion will begin Saturday. By Oct. 4, Wachovia’s familiar green and blue logo will give way to Wells Fargo’s red and yellow. We want our (customers) to know we are working diligently to make the transition as seamless as we possibly can. Account numbers will stay the same, and accounts from Wachovia have been grandfathered into Wells Fargo products.”

However, the local markets may or may not like the change to Wells Fargo. As stated in the Clarion Ledger, Mississippi Banking Commissioner John Allison stated Wells Fargo is converting Wachovia branches by region and it is too early to tell how the company will fare in the local market. It’s hard to say how much market share they’ll get until they start the Wells procedure of marketing, but Wells has always had a good reputation of being a strong institution.

One of the positive things about the change is that many of the branches will be keeping the same staff from when the bank was Wachovia. As told to the Clarion Ledger, “The same folks you see in our local stores or branches will be the same people who will open up the doors on Monday,” Collier stated. This helps those who want the bank to feel like it is more of a local business. Solomon added to the Clarion Ledger, “We’re a national bank, but we have a great local feel. Community involvement is a big focus area for us as we move in to 2011.”

Wells Fargo (NYSE: WFC) signage to replace Wachovia as conversion begins was created by and is property of American Consumer News.

Visa is currently the largest transaction processing network in the world. They’re looking to lead the way in efforts for turning smartphones into digital wallets, with the help of the largest United States banking institutions. With the potential for becoming the primary method of paying for everyday purchases, technological companies, banking institutions and cell phone providers are all hoping to get in the door first to the new technology.

Visa’s goal is to be 100% ready to go with allowing consumers to use their cell phones to make purchases, by the beginning of 2011. While this program is new to the United States, japan has been using their mobile telephones to pay for purchases for several years. The technology for making a payment with a cell phone works like this:

A customer brings their purchases to the checkout counter and wave their chip-embedded cell phone at a reader. The customer’s designated bank account information is read by the reader (much like a credit card reader pulls information from the swiped credit card) and the payment is made. In the future, it is likely that a customer will be able to maintain several different payment methods and choose which account to use to make the payment at the check out line, all from their cellular phone. This would eliminate the need to carry a wallet of various debit and credit cards.

Wells Fargo will run their testing of the program from now until the end of the year; Bank of America and US Bancorp (NYSE: USB) started testing in August and will continue through the end of the year, as well. All banks are testing the same technology in the pilot program with Visa.

News of the cell phone as payment technology appears to have affect both Visa and Wells Fargo share prices. Visa shares are up 2%, at $70.35 while Wells Fargo shares are up 3.7% to $24.43.

Visa (NYSE: V) and Wells Fargo (NYSE: WFC) Teaming Up To Try Out Phone Payments was created by and is property of American Consumer News.

In the July 2010 Making Home Affordable Modification Program (HAMP) service report, Wells Fargo provided and canceled 57,469 trial loan modifications under the Making Home Affordable program. The report also shows that 669 homeowners who either didn’t qualify for or were canceled from the trial modification under HAMP were given an alternative modification under agreement between the borrower and Wells Fargo.

Reasons for cancellation from the trial modifications vary from consumers not submitting the appropriate paperwork required, to defaulting on their modified loan agreements, to having a debt to income ratio that is too low to qualify for a permanent loan modification of their mortgage under the Making Home Affordable Modification Program.

In addition to the 669 offered alternative modification programs, another 4,019 homeowners who were canceled from their HAMP trial modifications were later offered a short sale or deed in lieu of foreclosure offer. While this has been helpful to these families, there are still tens of thousands of homeowners canceled from Making Home Affordable Modification Program in need of further assistance or they will end up having to foreclose or file bankruptcy.

If you are still struggling to make ends meet after having your HAMP trial modification canceled and having trouble making your mortgage payments, you may want to consult the FHA organization. The FHA organization offers counseling and consulting to homeowners struggling with mortgage payments in an effort to help as many homeowners as possible remain in their homes and avoid foreclosure or bankruptcy. You can also use a credit repair company to improve your credit and financial future.

Denied a Home Loan Modification? Wells Fargo (NYSE: WFC) Offers Alternative Mortgage Assistance Programs was created by and is property of American Consumer News.

As stated by Market Watch, “Staying on top of loan payments, books and room and board, among other expenses, is no easy task,” said Kirk Bare, head of Wells Fargo Educational Financial Services. “We are committed to serving the financial needs of students and families by providing a choice of affordable financing options and personal financial management tools. Through our educational programs, we help our customers develop good financial habits for a lifetime.”

Wells Fargo Education Financial Services is the second largest student loan originator in the United States and serves over 2.4 million students. Wells Fargo seeks to fill in the gap where financial aid, grants and scholarships don’t fill for needed expenses while in school.

Wells Fargo recently launched “Wells Fargo Student Loans for Parents” which helps parents or other sponsors help cover a student’s education expenses. This plan makes it so the parent or other co-signer is solely responsible for the educational loan.

These programs provided by Wells Fargo help students stay on top of their finances:

• The College Combo – this features the Wells Fargo College Checking account with free access to online banking, free bill pay, debit card, ATM access, and a savings account.

• CollegeSTEPS Program – this provides information on scholarships, financial aid, and other college preparation tools.

• My Savings Plan tool – this gives students an easily viewable way to save for their goals and monitor their progress in their goals.

• My Spending Report with Budget Watch – this helps students make a budget and monitor their progress so they can save more and spend less.

Credit cards are often one of the first big financial steps new college students make, and Wells Fargo offers their customers this opportunity as well. The Wells Fargo College Card helps the new college student by establishing credit and gives them the ability to make purchases online and even rent a car if needed.

Wells Fargo also offers free financial literacy programs for their customers. Check out their Student Center and Hands on Banking programs. Each of their banking stores also have free brochures to inform their customers about financial issues as well.

Wells Fargo Encourages Next Generation To Be Financially Savvy (NYSE: WFC) was created by and is property of American Consumer News.

This was the 11^th time Global Finance named the World’s Best Internet Banks. Banks were selected based on their strength of strategy for attracting and servicing their online customers, getting their clients to use their web services, growth of their online customers, amount of product offerings, and evidence of tangible benefits gained from Internet initiatives, and also on the bank’s website design and functionality.

As stated in the Wells Fargo press release, “In 2010 we celebrated our 15^th anniversary of serving our customers online, and we’re very proud to continue breaking new ground with services like mobile and text banking,” said Jim Smith, executive vice president at Wells Fargo Internet Services Group. “As a pioneer of online banking we take pride in ensuring that everything our customers find at wellsfargo.com is easy to use and well designed – and that they can find everything they need to succeed financially.”

Wells Fargo’s Commercial Electronic Office marked its 10^th anniversary this year. It was the first comprehensive internet portal for commercial banking customers at the time it launched in 2000. Now more than 50,000 companies access their 60 plus products and services. Wells Fargo currently has 17.4 million active online customers.

Some of the online tools offered include:

My Spending Report with Budget Watch – this is a patented and free online money management tool which categorizes customer’s transactions and enables them to track their spending by category so they can see where they can spend less and save more. It helps them easily create a budget with just a few clicks and monitor their progress.

My Savings Plan – this is a free online tool which provides customers an easy way to save for a goal they set and monitor their progress.

Smarter Credit – this is an online resource which provides information and services to help customers be smarter with their credit.

Online Bill pay – this is a service which allows customers to schedule payments for their bills that ensures they always pay on time – and stamp free!

Wells Fargo Named Best Consumer Internet Bank in U.S. (NYSE: WFC) was created by and is property of American Consumer News.

Wells Fargo’s remaining consumer and commercial loans offered by other Wells Fargo business units will be offered through Wells Fargo’s network of community banking and home mortgage stores, which is now the nation’s largest.

Since their 2008 merger with Wachovia, Wells Fargo’s customers now are able to access the company’s 6,600 Wells Fargo and Wachovia community bank stores and 2,200 Wells Fargo Home Mortgage locations. This seems to eliminate the need for a separate network of local offices, stating that less than 2 percent of all Wells Fargo’s real estate loans originated in Wells Fargo Financial stores in the first quarter of 2010. They hope that the consolidation will result in an increase of operating efficiencies, streamlined processes and controls in their stores, and a consistent experience for their customers.

As stated in the recent news release, “Our network of U.S.-based consumer finance stores, which have historically operated as an independent sales channel from our bank operations, have served customers well for more than 100 years,” said David Kvamme, president of Wells Fargo Financial, “but the economics of a separate Wells Fargo Financial channel are no longer viable, especially now that our customers have access to the largest banking and mortgage store network in the United States.”

Despite the closings of the 638 financial stores, they stress that this restructuring will not impact the number of community banking or home mortgage stores that are currently in operation across the United States. Wells Fargo stated that, “Customers with existing Wells Fargo Financial consumer loans and clients of Wells Fargo Financial’s commercial businesses will continue to be served without disruption, the company said. FHA home loans, auto loans and credit cards previously offered by Wells Fargo Financial will be consolidated with similar products across the company and will be offered through the company’s network of community banking stores, mortgage stores, phone banks and wellsfargo.com. Wells Fargo Financial’s commercial businesses will be realigned with business units within Wells Fargo over the next 12 months.”

Restructuring a business isn’t easy, and they know that it will be a difficult transition for some of their team members and families affected by these changes. Out of the 14,000 team members at Wells Fargo Financial, about 2,800 will be eliminated in the next 60 days, and 1,000 positions will more than likely be elminated in the next 12 months. The remaining team members will likely be reassigned to other Wells Fargo businesses.

As stated in the news release, “We know that this decision will be extremely difficult for those dedicated team members and their families who will be affected,” said Kvamme. “We have already identified positions for thousands of our employees and are committed to finding new positions for as many impacted team members as possible.”

Restructuring of Wells Fargo Financial Division (NYSE: WFC) was created by and is property of American Consumer News.

The hearing entitled: “Foreclosure Prevention, Part II: Are Loan Servicers Honoring Their Commitments to Help Preserve Homeownership?” addresses a real concern shared by thousands of homeowners who are trying to avoid foreclosure. Despite the fact that HAMP and other loan modification programs are designed to help homeowners stay in their home, the number of people who actually get assistance is disheartening. Lenders have been on the receiving end of heavy criticism regarding the way in which these loan modification programs are being facilitated.

In the opening statement made by Chairman Edolphus Towns, the problems with the HAMP program are clear.

“The chief complaint is the slow pace at which servicers are permanently modifying troubled mortgages. There is still considerable concern over confusing and conflicting communication from loan servicers to borrowers. And while more permanent loan modifications are being made, fewer delinquent borrowers appear to be qualifying for HAMP.”

Bank representatives had the opportunity to provide testimony to the Committee, describing the loan modification processes in place as well as the results. Representing Wells Fargo, Michael Heid provided the following data in his testimony.

• Over 2.2 million homeowners have new low-rate loans to be applied toward the purchase or refinancing of a home.
• About half a million loan customers facing a financial hardship have been helped through a trial or complete loan modification. 17 percent of those were assisted under HAMP.
• Short-term loan modifications were offered to 100,000 unemployed customers prior to the new government modification unemployment programs.
• $3 billion in principal forgiveness for customers facing a financial hardship.
• Options to prevent foreclosure provided to two-thirds of the customers who are more than 60 days behind in payments.

While it is encouraging to see discussions regarding this issue between the Committee and major loan servicers, the fact remains that for many homeowners struggling to avoid foreclosure, loan modification programs are not working. What may be more frustrating than dealing with the fear of losing one’s home is the apparent lack of communication between lenders and applicants and in some cases between the different departments within the same company. Until these and other issues are resolved, loan modification programs to help homeowners avoid foreclosure will continue to be viewed with skepticism by the vast majority of consumers.

Wells Fargo Represented At Loan Modification Hearing (NYSE: WFC) was created by and is property of American Consumer News.

Wells Fargo is the first and only bank to offer customers the option of receiving an e-receipt versus a paper receipt. The service announced in a press release from Wells Fargo will be available to all Wells Fargo customers with Online Banking as well as customers of Wachovia as conversion to Wells Fargo continues to take place. It is estimated that the Wachovia-Wells Fargo conversion will continue through 2011.

According to the head of Wells Fargo ATM Banking and Store Strategy, Jonathan Velline, “By offering our customers this e-receipt option, it gives them another opportunity to cut down on paper use and provide further convenience; the customer decides how, when and where they receive their receipt. Plus, since many of our customers manage their finances online, these e-receipts will help them keep tabs on their day-to-day financial activities in one spot. E-receipts are an important tool for customers to help keep track of their transactions and manage their accounts.”

Wells Fargo customers will notice that ATM transactions will remain the same with the only exception being this additional e-receipt option appearing in the receipt selection screen. Customers who opt to receive e-receipts will have an electronic copy with transaction details emailed to an Online Banking inbox or a personal e-mail account designated to receive this information. Customers can also choose to make e-receipts the preferred way to receive ATM transaction details by using MyATM® favorite transactions.

This new option made available by Wells Fargo not only allows customers a more convenient way of receiving ATM receipts but will also cut down on the amount of paper used to print traditional receipts. Mary Henzel, head of Environmental Affairs has stated, “We encourage customers to make the switch to e-receipts. With each one of us taking this one simple action we collectively can make a positive impact for the environment. In fact, each day for a year, if just 20 people refused to print an ATM receipt at each of the ATMs nationwide, enough paper could be saved to circle the world at the equator nearly six times.”

Wells Fargo First To Offer E-Receipt Option at ATMs (NYSE: WFC) was created by and is property of American Consumer News.

According to company social media program manager Doug Caldwell via the Wells Fargo-Wachovia blog, Texas and Kansas can expect to see the banks name be changed to Wells Fargo in July. Alabama, Mississippi and Tennessee will be changed over to the Wells Fargo name in September. Banks in Georgia can expect to see the name change in October. California’s Wachovia banks just made the switch to Wells Fargo in April.

Wells Fargo finalized their takeover of Wachovia at the end of 2008. It has however, been slowly transitioning the Wachovia banks over to the Wells Fargo name. So far, Wells Fargo has only completed the name switch in five states including California, Illinois, Colorado, Nevada, and Arizona. Wachovia banks in other states, such as Pennsylvania are set for the name transition in 2011. To see where your state is on the list, view their clickable map.

According to a recent article in The Washington Post, Wells Fargo has also added jobs and moved personnel around in the Virginia area Wachovia branches, and also overhauled the bank technology there. Even though the Virginia bank branches aren’t expecting to change over their name to Wells Fargo until 2011, the changes that they are making now are improvements which will help them for years to come.

Another progressive and positive change that Wells Fargo is making for the transitioned banks include changing their lights to LED. This change started in Colorado last Fall, and all the converting Wachovia offices, as well as Wells Fargo Advisors branch will feature the new energy efficient LED signs.

As stated in the blog “by the time the last state has transitioned on the East Cost in late 2011, we will have installed about 7,000 LED signs coast to coast. The total annual savings? An estimated $1.5 million in reduced energy and maintenance costs. Jay Doolittle, strategic planning manager for Wells Fargo’s Corporate Properties Group, says the switch to LEDs for the lettered wall signs came after a regular review of signage before the merger — including materials, lighting, lifecycles, and environmental sustainability.”

According to Doolittle, Wells Fargo also plans to upgrade and use more energy efficient components in all signs, re-use the temporary vinyl sign covers placed over new Wells Fargo signs, and break down the old Wachovia signs to recycle everything possible.

Wells Fargo Changing Wachovia Offices in Six Additional States in 2010 (NYSE: WMT) was created by and is property of American Consumer News.

The country has long history of failed drug policies and now that there is a turning around, the situation has been confusing banks. The Department of Justice has stated they are not interested in medical marijuana facilities. The Treasury Department has been telling banks to not lead to marijuana dispensaries or they could face federal prosecution.

In a recent letter sent from Congress, fifteen members have requested that the Treasury Department stop warning banks. Massachusetts Democratic Congressman Barney Frank has issued American banks a list of guidelines they are to follow when serving legal medical marijuana dispensaries. The letter states that the federal government will not go after the banks in legal states. The Congressman believes it is wrong for the Treasury to tell national banks they can not service dispensaries in the same way they would offer services to other businesses.
 
As a result of the warnings, the operators of the medical marijuana dispensaries are finding it harder to secure business relationships with many of the national financial institutions. There has been willingness from state-chartered banks to work with the medical marijuana businesses owners, provided the pot operations are legal.

Currently, 14 states have made medical marijuana legal. Those who have given the green light have done so out of medical compassion or the dependence on the tax revenues the pot places provide. Many more states are still considering the legalization of marijuana for medical reasons. California voters will cast their ballots in November to decide whether or not recreational use is also going to be made legal.

The growth and distribution of marijuana is still by federal standards illegal and many of the national banks won’t touch the operations including Chase and US Bank. Wells Fargo stopped all new account openings this month and will be reviewing any existing accounts the bank still has with medical marijuana operations.

Bank of America (NYSE: BAC) Balks at Medical Pot Backing was created by and is property of American Consumer News.

A parent, guardian, or other such sponsor takes the loan out in his or her name, receives the loan, and then disburses the loan to the student.

The loan differs from traditional loans, and even similar loans other banks may offer in that the parent or sponsor have 15 years to pay it off, and can opt for a 48 month interest-only payment. The loans do not have any early repayment penalties, often called windfall penalties. If you should obtain enough money to pay off the loan before it’s due, there is no penalty for doing so.

This loan can be filled out by any sponsor for the college student. Meaning if the student is going to an out of state school where another relative lives, that relative can take out the loan, saving some hassle. It could also prove financially strategic to allow a member with better credit scores to take out a loan, as the payments and interest rate would be lowest for individuals with stronger credit scores.

This loan is ideal for parents who not only want to be more involved with their child’s education, but can also be used to help teach students financial responsibility. The loan goes to the parent, not the student directly, which means that parents can either give one lump sum to their child, or gradually give them money as the student needs it, allowing for some spending control. Because it goes to the parent first, students can’t just blow it on something that seemed important at the time.

Wells Fargo Company’s Student Loan for Parents is available in all fifty states. Its flexible payment options, and no “windfall” penalties makes this a great option for many parents. It allows the student to concentrate on studying, and allows parents to take an active role in furthering their children’s education. The fact that anyone can help sponsor the student can make this an easier loan to take out, especially if your child is leaving the state for study. It makes it possible for other relatives to be able to take a loan out to help finance the cost of higher education, too.

Wells Fargo (NYSE: WFC) Announces Student Loans for Parents was created by and is property of American Consumer News.

This year’s top financier of the Charlotte, North Carolina’s PGA Tour Event is Wells Fargo (NYSE: WFC). The San Francisco-based bank will be spending $7 million on the tour and is the tournament’s biggest sponsor. However, despite the large check, Wells Fargo hopes to remain mostly anonymous and viewers from television will only hear promotions of the Quail Hollow Club, the host club’s name.

Initially Wachovia had been the company to provide the golf tournament’s sponsorship and had put its name all over the event, even calling it the Wachovia Championship from 2003 to 2008. This year the tournament will be called Quail Hollow Championship instead. Wells Fargo had taken its name off of the event in 2009 due to concerns of negative publicity from sponsoring a golf event while it was receiving bailout funds from the government. The $7 million annual agreement to sponsor the event through 2014 was part of a contract extension Wachovia signed in 2008. Wells Fargo acquired the contract in 2008 when it acquired Wachovia and plans to see it through until the end. The bank just plans to do the sponsorship a bit differently than in the past by remaining rather mum about their affiliation with the event, even though they are still set to write an enormous check.

Wachovia wasn’t the only company who underwent criticism for its sponsorship of golf tournaments. Other companies including Morgan Stanley and Northern Trust were also pointed to by Congress for wasting money during times of such financial crises. Companies that had very little to do with the financial meltdown were still being blamed for their tie to PGA sponsorships. The PGA Tour actually went to Washington to speak with legislators about the advantages of sponsoring golf tournaments. They contended that sponsoring the tournaments were not a sign of excess or flaunting. Since Goldman Sachs and Lehman Brothers were not involved in the golf sponsorships, it seems the golf community won the debate. Past banks that sponsored the golfing events are still involved though scaling back. Many are taking their names off of the big events but still acting as sponsors.

Wells Fargo (NYSE: WFC) Takes $7 Million to Charlotte’s PGA Tour was created by and is property of American Consumer News.

According to a report by the Center for Responsible Lending, “unless the OCC and other bank regulators take action with regard to bank payday loans, these products will likely proliferate throughout the banking industry as financial institutions look for new sources of fee income.”

Like payday loans, these short-term, high-interest loans cause borrowers to become trapped in a cycle of debt they can’t pay back. As changes to credit and debit card laws reduce the income banks bring in, products like these are expected to increase as banks seek new ways to generate income.

Payday loans are prohibited in many states, with payday lenders not able to service customers in those states. The District of Columbia and fifteen US states prohibit triple-digit interest rates on loans. National banks (like Wells Fargo) are regulated by the Office of the Comptroller of the Currency (OCC), which is part of the US Treasury Department, don’t fall under the same regulations as payday loan lenders and therefore are able to evade limits. Consumer groups are advocating for the OCC to put a stop to these short-term, high-interest loans through national banks.

Wells Fargo defends their short-term, high-interest loans saying they are a service to existing customers finding themselves caught in an emergency. The cost of the service is fully disclosed to the consumers and complies with both state and federal laws. The service allows existing Wells Fargo customers who receive a direct deposit of at least $100 every 35 days to receive an advance of $500 (or half the monthly direct deposit income, whichever amount is less). The funds get repaid automatically from incoming direct deposit funds or the customers bank balance.

The loans are provided to consumers without any determination of the consumers ability to repay the loan. In 2000, the OCC prevented national banks from partnering directly with payday lenders, but they don’t have a problem with national banks offering similar high-interest, short-term loan products.

Wells Fargo (NYSE: WFC) Offering Short-term, High-Interest Loans Similar to Payday Loans was created by and is property of American Consumer News.

Wells Fargo (NYSE: WFC) took over Wachovia Bank in December 2008 and the move to phase out the name is going forward. Evidence is cropping up around the country where Wachovia signs on buildings are being replaced by Wells Fargo signs. This is one of the more obvious moves the bank has made since the take over.

Most banks still possess Wachovia signs except for locations in Colorado, Arizona, Illinois, and Nevada. California is set to change by April 24 with Kansas and Texas to follow in July. Brokerage and advisory offices are looking to replace the name within the year. The Wachovia brokerage headquarters was moved from Richmond, Virginia to St. Louis back in 2008 and the name was changed last ear. Most international locations are reported to have changed to Wells Fargo as of March 20.

In other areas of the company including banking services, the company continues to use the Wachovia name but also adds in bright red letters ‘A Wells Fargo Company’. Phone messages announce both the Wells Fargo and Wachovia monikers.

“Since announcing the Wachovia and Wells Fargo merger, we’ve been building on each other’s strengths and expanding our capabilities to better help our customers,” said Dave Zuercher, executive vice president and group head of Wells Fargo’s International Group. “We’re proud to serve our global customers as one team. Providing our customers with the same high level of service and helping them succeed financially remains our number one priority.”

Wells Fargo’s International Group serves individuals, businesses, corporations, financial institutions, and multilateral and international agencies. Wells Fargo is currently ranked number No. 1 in overall institutional customer satisfaction and No. 2 in the world in worldwide market share for primary global correspondent banking relationships by FImetrix. The company boasts 27 overseas representative offices and branches in Hong Kong, London, Seoul, Shanghai, Singapore, Taipei, Tokyo and the Cayman Islands.

The company is reported as having $1.2 trillion in assets and provide customers with banking, investments, mortgage, insurance, and consumer finances services in more that 10,000 stores and over 12,000 ATM in North America and Internationally.

Wachovia Name Being Phased Out By Wells Fargo (NYSE: WFC) was created by and is property of American Consumer News.

Wells Fargo indeed had a profitable year but it is expected they will write off the losses of Wachovia, which Wells Fargo rescued last year before its ultimate collapse. Over at Bank of America, the tax-free year is possible because of its outright losses of money in the United States in 2009.

Tax experts say it is not unusual for big businesses to not have to pay federal taxes, especially for 2009 when so many were at a loss. But some who vehemently oppose the tax-free situation say the government should not be giving breaks to companies failing to make money.

While federal income tax may not be owed, it is a different situation state-wide. In 2009, Bank of America neeted a $2.3 billion benefit regarding income taxes, with a $3.6 billion from the federal government, with spending at $1.3 billion which was paid out to different state governments as well as foreign governments. Companies may hold a debt to the state government that varies greatly at a federal level, as is the situation with Bank of America. The federal government offers many more tax deductions that at state level. Company tax returns are not made public so there is no way to say how much a company pays to or receives from taxes each year. Wells Fargo did have a profitable 2009 with $8 billion in earnings for shareholders but due to the losses from the Wachovia acquisition, payments made were decreased.

There is a bigger buzz about such corporate tax breaks because of a provision in the stimulus bill from 2009 which allows companies to “carry back’ losses from 2008 and 2009 to five years previous, instead of just two. Industries such as homebuilding were dealt big losses in those years but had made a lot of profit in the years before that so they now stand to get billions of dollars in refunds. While this may be the situation for many companies in the country, Wells Fargo and Bank of America are not eligible to use this provision because they received TARP loans.

No Taxes for Bank of America ((NYSE: BAC) and Wells Fargo (NYSE:WFC) was created by and is property of American Consumer News.

This program has been delayed for months, but once Citigroup (NYSE: C) came on board with the plan to reduce second mortgages for troubled borrowers, Bank of America (NYSE: BAC), Wells Fargo (NYSE: WFC) and JPMorgan Chase (NYSE: JPM) followed.
With nearly one in three homeowners currently underwater on their mortgages (according to Moody’s Economy.com), this program is long overdue, many critics believe. Home foreclosures have increased despite the Obama administration’s effort to prevent them. Previous attempts to reduce the number of foreclosures is a problem plagued by more than 100 different mortgage companies. The existing efforts saw 1.1 million homeowners applying for modification programs and assistance to keep their homes, but only 170,000 homeowners have been able to complete the process.

“We remain dubious about government mortgage modification efforts,” wrote Jaret Seiberg, an analyst with Concept Capital’s Washington Research Group. “So far none have lived up to expectations and we see little reason to believe the latest effort will turn out any different.”

This new mortgage loan forgiveness plan under the Obama Administration requires the mortgage companies participating to slash the amount of principal the borrowers owe, or eliminating second mortgages like home equity loans that have blocked many loan modification options for borrowers previously – in exchange for incentive payments from the government. Now that the big four players in the mortgage industry are on board, Citigroup, Bank of America, Wells Fargo and JPMorgan Chase – many people have greater hope for it’s success.

Citigroup (NYSE: C), Bank of America (NYSE: BAC), Wells Fargo (NYSE: WFC) and JPMorgan Chase (NYSE: JPM) Join the Obama Administration to Reduce Second Mortgage Balances was created by and is property of American Consumer News.

According to the February numbers reported by the Make Home Affordable Program, Wells Fargo has seen an increase in the number of homeowners who are delinquent, with close to 22,000 more homeowners falling behind in the month of February. A total of 379,357 Wells Fargo mortgage holders are now delinquent, even though the number of permanent loan modifications that have been approved are increasing. These numbers move Wells Fargo from 38% to 37% in standing for the number of loan modifications made in comparison to the number of homeowners who may qualify for loan modifications.

As more borrowers fall behind in mortgage payments, it increases the difficulty for lenders to modify existing home loans. Since the inception of the program, many lenders have improved their participation in the program, but not without complaints from homeowners who claim lenders are not doing as much as possible to help them remain in their homes. There have been complaints in the past about some lenders who do not provide written contracts or regarding paperwork that has been mishandled resulting in homes that go into foreclosure despite homeowners belief that they are enrolled in a program that will halt foreclosure.

If you are having trouble keeping up with your mortgage payments but feel a loan modification could make your mortgage more affordable, it is important to discuss your options with your lender. Homeowners cannot simply ignore the problem and hope it will go away, instead you are encouraged to contact your lender as soon as you realize you cannot make timely payments. Wells Fargo may have slipped slightly in standing within the program, however all hope is not lost. Wells Fargo has increased the number of loan modifications that are approved and hopefully will continue to do so for the thousands of consumers worried about losing their homes. If you are considered for a loan modification, understand that you must meet all requirements outlined by your lender as well as pay all payments on time during the trial period. Contact your lender for more information.

Wells Fargo Falling Behind In Make Home Affordable Program (NYSE: WFC) was created by and is property of American Consumer News.

Wachovia Bank customers may not know how close they came to not having a banking institution. Last week, Wachovia Bank was running but with strong concerns that the bank would not be open for this week. Before any deals were being worked out, Wachovia did not have a source of liquidity and under those circumstances, the banks could not have opened their doors for business. Wachovia Bank has been working on a merger prior to the most recent events. Over the weekend, the Federal Deposit Insurance Corporation, otherwise known as the FDIC, put pressure on the bank to make a deal.

Close To Collapse from Withdrawals 

The urgency became apparent after the executives at Wachovia realized that after the failure of Washington mutual, many of the larger corporate clients made an unusual number of withdrawals on their account. The majority of the withdrawal came from account containing more than $100,000. This severally paralyzed Wachovia’s access to operating capital.

Several Deals on the Table

Wachovia was approached by Citigroup, who offered a deal with assistance from the FDIC. The original agreement involved Citigroup purchasing Wachovia’s operations and the majority of the assets. The FDIC planned to aid the sale. The wheels were set in motion but never fulfilled. Wachovia has since changed tactics and made the agreement to be acquired by Wells Fargo. One of the main reasons this current action was taken was due to the ability of Wells Fargo to seal the deal without the help of the federal government. Wachovia reportedly is pleased with the arrangements because without the involvement of the government, Wachovia Bank can stay primarily intact and taxpayers would not have to help pick up the tab.

The official bid was approved by the Wachovia Board on Thursday evening and must still be cleared by the shareholders of the bank. Wells Fargo does anticipate that government regulators will approve the deal and everything will be completed before 2009.

Forget Citigroup – Wachovia Acquired by Wells Fargo was created by and is property of American Consumer News.