As many of you have probably heard, Wells Fargo is currently embroiled in a cross-selling scandal involving millions of fraudulent accounts being made without their clients’ knowledge (cross-selling is when a different product/service is sold to an existing customer). Wells Fargo’s abuse of this practice – which is standard in the banking industry - was the result of bankers cutting corners to meet ridiculous product per customer quotas passed down by company executives.
While we'd like to think that most bankers aren’t subject to the same quotas that Wells Fargo employees were, most bankers are incentivized in one way or another - through bonuses, promotions, pay raises - to open up as many accounts per client as possible. If you’ve ever opened an account or taken out a loan with a major bank or credit union you’ve probably been at the receiving end of aggressive cross-selling before - “We recommend you move your car loan over to us”, or “While you’re here, can I interest you in opening up a savings account?” In the case of Wells Fargo, the pressure put on bankers to open these extra accounts was enough to lead many to fraud.
This is one of the advantages to working with a loan advisor rather than going to straight to a bank/credit union for your mortgage. They have no financial incentive to do anything other than to make sure you are satisfied and feel comfortable referring them more business later on down the road. Just some food for thought!
If you're thinking about buying a home and you'd like to be put in contact with one of my preferred loan advisors, feel free to reach out - I'd be happy to make the introduction.
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