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

Courts

UWM Seeks More Than $500M From Two Harbors After Failed Deal

Lender alleges Two Harbors undermined their merger and steered the company toward CrossCountry, turning a costly acquisition failure into a federal court fight

The fight over Two Harbors Investment Corp. did not end when shareholders approved its sale to CrossCountry Mortgage.Now United Wholesale Mortgage wants damages.UWM Holdings Corp. and UWM Acquisitions 1 LLC sued Two Harbors in federal court Monday, seeking more than $500 mil...

Wholesale

UWM Offers LOs 90-Bps Incentive On One Agency Loan

Bullseye 90 can be applied to a conventional or government purchase or refinance loan through Sept. 8

United Wholesale Mortgage is giving each loan originator a one-time, 90-basis-point pricing incentive to use on a qualifying agency loan.The wholesaler’s new Bullseye 90 program applies to new locks from Aug. 5 through Sept. 8 on conventional, FHA, VA, and USDA purchase and ...

Oct

Colorado Mortgage Summit

Denver, CO

More from

Regulation and Compliance

CHLA Uses Trump Mortgage Order To Renew Push For LO Comp Reform

Community lenders want more flexibility over employee compensation, closing-cost estimates, down payment assistance, and federal supervision of smaller IMBs

Regulation and Compliance

Aug 10, 2026

Servicers Begin Testing Systems Ahead of VA Partial Claim Deadline

VA lenders and servicers have until Nov. 28 to implement the new loss mitigation waterfall and Partial Claim Program

Regulation and Compliance

Aug 06, 2026

ROAD Act’s Housing Incentive May Be Too Small To Move Supply

Realtor.com finds the median city risks losing only about $84,000, although the policy could carry more weight in supply-starved Northeast and Midwest markets

Regulation and Compliance

Aug 05, 2026

CRA Proposal Could Reshape Bank Lending And Affordable Housing Investment

The OCC and FDIC would put more weight on lending while easing community development requirements for hundreds of banks

Regulation and Compliance

Aug 05, 2026

Fannie Mae AI Governance Deadline Arrives Aug. 6

Seller/servicers using artificial intelligence in origination or servicing must have formal policies, oversight, and vendor controls in place

Regulation and Compliance

Jul 31, 2026

Condo Review Deadline Puts Lenders On The Clock

Fannie Mae and Freddie Mac will eliminate abbreviated project reviews for condo applications dated on or after Aug. 3