Update, the hearing is postponed from this Monday due to the hurricane Sandy – Court was closed for 2 days causing a backlog. No new date set as of yet.”

My name is Elizabeth Jacobson.   I blew the whistle – loudly and with conviction — on Wells Fargo for its predatory lending practices and reverse redlining.  My Affidavit (copy attached) was used in Baltimore City’s lawsuit against Wells Fargo and then used in conjunction with my interviews with the Department of Justice to settle a claim this past July between the DOJ and Wells Fargo.  My intervention resulted in a payout by Wells Fargo to the tune of $178 million dollars.  I have not been, am not now being, nor will I be compensated for my being instrumental in the success of these two cases.

Thanks to forensic loan servicing documentation analysis and compliance consultation of Professional Compliance Examiners (PaCE, LLC) in Maryland, I am poised to assert factually that Wells Fargo has staged a perfect retribution for my free speech pronouncements: Wells Fargo has inexplicably returned all my payments received from me under a HAMP loan modification in order to use the legal system to file a foreclosure action to take my home.  This is despite the fact that Wells Fargo does not own my loan, and that Wells Fargo’s own transparent actions document the retributive injustice it metes out here.  The facts

  • On 10/15/07 I closed on my home, which continues to be my primary residence.  My lender was Wells Fargo.
  • On 11/13/07, nearly one month later, Freddie Mac purchased the loan to my home.
  • I was employed by Wells Fargo from 8/1998 – 12/2007, where I was consistently a top producer, and a 5-time President Club winner.
  • My Affidavit was used as evidence in the case brought by Baltimore City against Wells Fargo.  On 7/2/09, Judge Lee denied Wells Fargo’s Motion to Dismiss that case citing the basis of his decision on my Affidavit.
  • In November 2009, I submitted a loan modification application for HAMP (Home Affordable Modification Program ) to Wells Fargo as the servicer of my loan.  I timely remitted all 3 trial-period payments, as well as 4 more payments as Wells Fargo conveniently failed to convert the trial period to a permanent loan modification in the required 3-month time period.
  • Michael Heid, co-president of Wells Fargo, testified to Congress on 6/24/2010, wherein he discussed the lawsuits in Baltimore City and Memphis (my Affidavit was also used in the Memphis case).  Mr. Heid acknowledged my Affidavit in his testimony.
  • On 6/29/10, just 5 days after Mr. Heid acknowledges my Affidavit, Wells Fargo denied my application for HAMP due to “missing paperwork” but did not ever specify what paperwork was missing.
  • Wells Fargo issues me a letter dated 6/30/10 indicating that it would continue to work with me in securing a loan modification. 
  • On 7/6/2010, Wells Fargo, out of the blue, issued to me a check for ‘misapplication reversal.”  The amount was equivalent to the sum of all 7 of the HAMP payments I had remitted to Wells Fargo.  This is a violation of HAMP, which holds that “In no event should the Servicer return the funds to the Borrower” – directly from the MHA (making Home Affordable)  FAQ. 

Based on the foregoing facts, Wells Fargo had no intention of working with me to secure a loan modification as they stated in their 6/29/10 letter.  It returned all the HAMP payments it received from me one week later, violating both HAMP and Freddie Mac requirements.  Wells Fargo refused to accept my mortgage payments and refused to work with me to modify my loan, and instead had me walk the plank into the sea of foreclosure.  In June 2012, Wells Fargo stacked the deck to play this hand:  It is the ‘secured’ party to my loan. No documentation supports this claim, nor changes the fact that since 11/13/2007 Freddie Mac has been the owner/investor on the loan and Wells Fargo merely the servicer. 

Attached is my letter to FHFA (Federal Housing Finance Agency) whose response to me was that they were forwarding my information to Freddie Mac.  To date, I have not been contacted by Freddie Mac.

I choose to face Wells Fargo at a hearing regarding my foreclosure on November 5, 2012, at 9:00 in Talbot County Circuit Court. 

When I spoke out about what Wells Fargo did against public policy and tax-paying consumers, everyone wanted to hear my story.  If we do not express anger and moral outrage at evil, something is very wrong with us.  It is foundational to any self-governing society, and I did not expect, nor did I receive, public acclaim nor compensation.

But now that I’m being targeted by Wells Fargo in its wanton disregard to the HAMP guidelines so that they can steal my home, there is no one to express outrage on my behalf at an act that any sane individual would regard as heinous—thievery used by a bank manipulating the legal system to steal a home.  Nowhere are the numerous reporters who consulted me for information about Wells Fargo’s reverse redlining; nowhere is the mayor of Baltimore City and the City Council members; nowhere is the DOJ; nowhere are representatives of the cities and communities enjoying the $178 million that result from my exercise of free speech.

I am pro-business and pro-family.  Wells Fargo’s actions affirm neither.  Where private property rights and social justice that undergird our society are ruptured by bad acts—single, transparent, obvious, bad acts such as those committed in this situation—the public debt incurred is tenfold.

If you are an elected or appointed agency official of the State of Maryland or the US Government, please contact Wells Fargo IMMEDIATELY to request that this foreclosure does not proceed.

If you are in the media, get the word out—call me at (443) 995-8461.

I intend to do everything one person can do to stop Wells Fargo from stealing my home November 5th, but I NEED YOU TO SPEAK UP NOW on behalf of one whistleblower who spoke up for thousands of homeowners.

Baltimore city Aff’d.pdf [download]


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  1. These are letter and Notices from a web site. The FDCPA letter and Letter of Objection are the most important to add to the Cease and Desist order. I am not an attorney and can not give legal advice so please take these all to an attorney for help.

  2. off topic but check this out


  3. Roy Stivers says:

    @Elizabeth Jacobson-I know these words will not be able to help you, but I find that I must state them anyway. I thank you from the bottom of my heart for being the brave soul that you are. I sincerely pray for your relief and satisfaction from this horrible injustice you are currently undergoing. The masses have no clue of what you are enduring, nor the sacrifices you have made for their benefit. It is not much, but I do understand, and I sincerely thank you. I’m not sure of what else I might do to express this appreciation, but if you think of anything please do not hesitate to call. (808)315-8336 God bless, Roy Stivers

  4. Elaine Williams says:

    Appaling! I know this woman, every word she posted is true! I am horrified that this can actually happen here, in 2012 in the United States, to a person like her who knows all the rules and is aware of her rights! This sounds like a story you’d hear on NPR that is taking place in China! I pray that Talbot Country will recognize this travisty for what it is – retribution for whistleblowing and toss WF out on their hatefull asses. What bastards!

  5. Charles Reed says:

    Dear Elizabeth, you more than anyone else in the country are responsible for hundreds/thousands of families in and around Baltimore who have lost their home, as you placed them into subprime adjustable rate loans, where because of the color of there skin they were even charged more than white. Yet as the Subprime Industry was shutting down the business by Nov 2007 and you quit or laid off in Dec 2007, does not make you a hero, but only a bitter employee cut off from $700,000 per year.

    You only came forward after the crash of Subprime. Yes it was because of you Wells Fargo got caught, and without you coming forward as a white loan officer, Wells Fargo would still be wearing this halo on their head, when in fact over at the Stage Coach from Hell they got the biggest horns ever. I should know as I quit because I could not get them to stop abusing out US troops in 2005.

    You made $3 million it would seems from 2003-Jun 2007, where in one year you made $700,000 probably on 200-250 loans in that one year, killing the borrowers who are now homeless, but you want your house saved?

    The only reason your not in jail for violating the Fair Housing Act yourself, is because Wells Fargo is Too Big to prosecute criminally so you get a pass. However as far as Wells Fargo Bank not treating you, as you treated all your customers by screwing them, but you should know a cat does not change it spots and whether it now or later when the spot light is gone, remember it a modification and I would imagine your never going to ever make a 1/3 of what you were making a year, and Wells Fargo at some point is going to extract its revenge. Wells Fargo is a $1 trillion dollar bully, and it not about getting even with you, it about burying you.

    They let you keep the $3 million or more you made from illegally performing all those loans and now you want them to modify your loan? Remember Wells Fargo’s customer service/modification personnel are cut from the same cloth as you, and are doing to you now what you did to the thousands of customers you said you had a discretion to do as a loan officer.

    Now, what you can do is get the HAMP regulation and state to the OCC & Fed or FHFA IG departments, and state what being done illegally to you and submit a whistle blower retaliation claim.

    Read your affidavit yourself and understand you have admitted to crimes you have committed, and you cannot gain from the crimes you committed. Take a 1,000 loans at $150,000 average loan amount and all those loan have foreclosed that $150 million in borrower properties they no longer own, because you put them into bad loans when in fact they qualified for Prime, FHA & VA loans that would have protected they from all this destruction.

    You are the white women that yelled you were assaulted and they hanged all the home owner and dragged them through the streets trashing the lives, but now you admitted that it was really you that was the one assaulting the accused, but the accuse can’t be made whole. CRA my a$$!

  6. Beth Jacobson says:

    @ Charles Reed – if you actually read my Aff’d you would know that I did not orginate any of the loans in Baltimore City. My business plan did not allow me to solict homeowners directly. I blew the whistle on what Wells Fargo instructed loan officers to do, prey on the black churches. I processed loans that were turned down on the A side (prime side of WF) which means they were already vetted for prime and/or FHA and denied. I just reviewed the documents, never met the homeowner, never knew their race sometimes didn’t even know their gender. I never made 3 million dollars at Wells Fargo.
    Yes, I am a bitter former Wells Fargo employee because I did everthing Wells Fargo required of me, I followed the guidelines, I priced the loans as required. But Wells Fargo lied in 3rd quarter of 2007 and stated that Wells Fargo did not even have a subprime division when in fact it was the number one subprime lender. Statistically Wells Fargo orignated more subprime loans to whites than to blacks or any other race. I believe that Wells Fargo sees only one color – green (money). Believe what you want, rant what you want but I know the truth. (also check your math, not everyone in a subprime loan has been foreclosed on. Many homeowners in prime/GSE/FHA loans are being illegally foreclosed on daily)

    Wells Fargo continues to foreclosure on homeowners illegally either with dual tracking or with fraudulent documents. Wells Fargo now ignores the recent AG Agreement by refusing to post its modification guidelines on line.

    Now I’m in a position to help homeowners facing foreclosure because neither the federal gov’t or state gov’ts are doing anything to stop these foreclosure mill attorneys.

  7. Charles Reed says:

    Dear Beth, from what I understand from you interview and affidavit is that you were the Top Subprime Originator that Wells Fargo had. It seem it your focal point that you made $700,000 in one year. But as a prime side originator at Wells Fargo, I know you were referred these loan from the bank floor as Financial and More gave a referral fee to the bankers, or the equally non trained new loan officers, or those who did not want to work on the something more difficult loan the government loans can be. The easy path was to pass on to the subprime section and get more in a commission than processing the loans themselves.

    Look I know you had a job to do and would have been successful no matter what division you worked in, however the case is that if you where in this call center just taking in applications and then turning them out, you today are still are unaware that FHA & VA loans up until Jan 2010 never had a FICO score requirement. So in theory a person with a 1 score could get a government insure loan at lest say in 2003 paying zero point a 5% 30 year fixed rate & term and now as rates are down to 3.625% simply do a streamline refinance not having a new appraisal and not cost.

    You see I was in the Midwest providing loans to mostly white customers because that was the majority population, treating everybody that came into my office as family, giving them a 5% to 6.5% 30yrs terms depending on what year for the difference in the rate, with 500 FICO. It was not until sometime in 2006 that Wells went to a self imposed minimum score of 595 FICO, but that was not the federal government’s rule, but a bank rule. Your department was giving these folks 8-10% Adjustable Rate Mortgage that max out a 5 or 6% increasing over the life of the loan that was attached to the rigged LIBOR, with a prepayment penalty so when the folk woke up and wanted to refinance out of the train wreak, Wells Fargo would get them on the back end.

    Yes Wells Fargo probably did more white than black subprime loans, but the blacks would have qualified for the better loans which is covered by the Fair Housing Act. Now Wells Fargo was fined last Jul 2011 by the Federal Reserve Board in the amount of $85 million for the other who were being steered, and your right Wells Fargo think in the terms of the color of green.

    Wells Fargo on one side of town or the other side of the country cannot be giving white through me, the better pricing and lowest cost, but in Baltimore as we know now as Wells is mailing out checks that were sent out were they were charging Hispanic $2,000 more than white and blacks $3,000 more that white.

    I realize reading your affidavit that when you talked to the attorney for the city, that you did not have legal advice because if you step back and look at the situation, there was a point you should have known that 4% to 10% origination point was excessive on an average size loan. I don’t know who convince you to talk with city, as I would think it was the dude Tony Paschal that got you to talk because this is crazy.

    And yes I know Wells Fargo is currently involve in an illegal scheme in foreclosing on mortgage servicing customers that are not their loans but are pretending to be which I have reported to the government. Yes Wells Fargo I am sure are screwing you over because you did go to the city. I will say that nothing would have been done without you as far as the subprime fraud, but there are a thousand home owner who are screwed because there is no modification for them and I am not sure even with the settlement that these families are taken care of.

  8. Charles Reed says:

    Let me also add that we who were following the law and providing what people, families our brother under God, where fired because the market collapsed due to all the defaulting loan that Wells Fargo and other performed. Now I see the same crooks holding the jobs that honest mortgage loan officer where once in those offices, who were not raping our customers, but these old Wells Fargo Financial personnel who had no conscience then in what they charged are now rewarded because they will ignore the law, or not have a reference point of the law and will produce whatever is asked, while making $700,000 per year. Who makes $700,000 a years charging up to 10% points and not think something wrong?

    As a result of these bad loans today we have 14 million unemployed and another 10 million part time workers, simply because customers who all paid for financial advice where steered into bad loans. Remember borrowers paid fees to have these loans produced, as it was free.

    I find myself torn about Ms. Jacobson, and at the very start of this crisis when I called the Mayor of Baltimore in Feb 2008 after this story broke, and she put me in contact with the legal team the city had hired, and yes they did not want to hear about the Troops or elderly white I saw being abused in the same manner as the blacks involved in the $175 million settlement because it did not fit their case, but they were interested in how the borrowers were being transfer to the subprime section and I did provide them with that. Now given government did not get all the money they should have gotten in these settlement, because as I said government loans then did not have a FICO score requirement at all, and even today the score is only 580 today for a 97% Loan to Value loan FHA loan.

    Regardless Ms. Jacobson was the reason behind the settlement, but she was also the leading reason for the bad loans. I offer wondered what made her mad, and I can see how she felt, when you think your within the law, but it almost 5yrs later now, and you don’t get that you were not within the law, the settlements should let you know you and Wells Fargo were outside the rules & law.

    Look at every settlement Wells Fargo has had starting with the auction-rate securities (Nov 2009) which was $1.4 billion, it was the sale personnel that were blame for selling stuff they were not trained for. So let look at the current crop of modification personnel who call themselves Executive Mortgage Specialist, who are like all the other personnel who are not trained to understand the full body of their job. Wells Fargo format is the same in each of their crimes and that is to blame their wrong doing on staff not trained. This pattern is coming home to roost.

    So only Ms. Jacobson know if you received a deal from the Justice Dept, because ignorant of the law is no excuse for breaking the law. I doubt the families that lost their homes are happy and in a forgiving mood because of the fact that someone came forward, if it does not result in them getting back their homes.

    The affidavit state that $700,000 was made in one year, so I take it that the other 4 years Ms. Jacobson was top producer (President Club)at least over those 4 years, at half the commission amount that 1.65 million plus the $700,000, and the other 4 years at $162,500 per year, all added up to $3 million. This is giving the benefit that the other years on the President Club the income was cut in half and not close to the record amount.

    These comment are more for Wells Fargo and HUD/Ginnie Mae than for Ms. Jacobson, to let them know I am coming and I intend to retrieve the $24 billion they currently owe the United States taxpayer for the fraudulent foreclosures of FHA & VA borrowers properties from 2008-2010 and that figure does include treble damage. It must be understood that not Wells Fargo or Ginnie Mae plus other lenders/servicers owned the Notes with a debt attached to them or have a valid lien against the properties.

    Wells Fargo along with the rest of these large banks, had the blessing of Ginnie Mae foreclosed on our Troop who were fighting on the front lines and just returning from their combat tours and we fellow troops don’t leave a troop behind, just as with the Seals in Benghazi who I could have gone to Airborne training with. Do we have no honor at all?

    Some one give a shout out to Secretary Donovan who have the wool pulled over his eyes bu Ginnie Mae!


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