Ex-Wells Fargo Mortgage Banker Sues for Wrongful Termination

Jan 23, 2018

A former Wells Fargo mortgage banker has filed a wrongful termination lawsuit against his ex-employer, stating that he was used as a scapegoat when the lender was called to task for improper practices.

The Los Angeles Times reports that David Eghbali, who worked in Wells Fargo’s Beverly Hills location, is claiming that the bank fired him as part of an effort to divert federal investigators away from “Wells Fargo's own predatory mortgage pricing policies.” Eghbali, who stated that he attempted to protect his customers from improper fees charged by Wells Fargo, was also fined $85,000 by Consumer Financial Protection Bureau (CFPB) and given a one-year ban from the mortgage industry.

Eghbali said that he attempted to inform the CFPB about the wider practice of improper fees at the bank, but that the regulator ignored him and was "misled by Wells Fargo's one-sided account." A CFPB spokesman said Acting Director Mick Mulvaney is "interested in getting to the bottom of what happened in this matter."

Eghbali filed his lawsuit in U.S. District Court in Los Angeles and is seeking $25 million in damages.

About the author

Phil Hall

Link copied

Published

Jan 23, 2018

Industry News

UWM, UMortgage Under Attack For Alleged Shell Scheme

A report released on April 25 by the hedge-funded media company alleges UWM set up a shell company, UMortgage.

Just weeks after allegations against United Wholesale Mortgage (UWM) were published in an exposé-style report and a class action lawsuit, Hunterbrook Media is once again putting the Michigan lender under the spotlight. On Thursday, the hedge-funded media company published...

Analysis and Data

Homebuying Excitement Is Up Among Veterans

Survey results indicate optimism about housing market among U.S. veterans and service members

Our nation’s heroes are increasingly optimistic about buying homes, new research indicates. The amount of veterans and service members who plan to purchase a home in the next six months was up by 15 percentage points year-over-year, according to the Veterans Homebuying Re...