The Wells Fargo newsletter incident in which the online company emailed a story to its customers slamming some questionable practices of real estate professionals is a perfect example of how easy it is for the online unit of a bricks and mortar company to get a little cocky. In the interest of serving its consumers with what it felt was a legitimate warning against self-serving and dishonest business practices of some real estate agents, Wells Fargo Online thought it was passing along a clever piece that made its own unit look all the more expert by comparison. But Wells Fargo Online didn't know what Wells Fargo Mortgage, another division of Wells Fargo & Company knows very well - that Realtors are responsible for 70 percent of its loan referrals.

"It really comes down to a lack of communication and the group that put that newsletter together and those of us who work with Realtors," explains Dan Frahm communications director, Wells Fargo Home Mortgage. "It was an oversight. The story was written by SmartMoney magazine and they are a reputable news organization. That weighed more heavily than it should have."

Frahm has supplied Agent News with the company's apology to any agents which may have been offended by the story, and promises to collect more balanced information for its consumer readers in the future.

An article called "10 things your real estate broker won't tell you" recently appeared in an e-mail-based newsletter distributed by Wells Fargo Online, a unit of Wells Fargo & Company. Understandably, this caused great concern in the Realtor and real estate broker community. While the newsletter's purpose is to provide helpful information on a wide variety of personal finance subjects, the articles written by third parties are not intended to reflect the views of Wells Fargo. In this case, however, the article expressed an opinion we at Wells Fargo Home Mortgage absolutely disagree with. This article should never have appeared. For this, we apologize. We will not use this article again. We will not use articles with this tone and direction again.

Through our nationwide network of Wells Fargo Home Mortgage stores, we have close working relationships with literally thousands of Realtors and real estate brokers. We have great respect for the valuable services they provide the American homebuyer.

The Wells Fargo Online newsletter will, in its next issue (September), include a story from another third party source, focusing on the valuable role Realtors and real estate brokers play in the home buying process ... the view we at Wells Fargo Home Mortgage endorse. This new article will also be posted for viewing on wellsfargo.com, our company web site.

Without our close working relationships with real estate professionals, builders, mortgage brokers and other referral partners, Wells Fargo Home Mortgage would not be in a leadership position today. Just as important, however, we are taking these steps to promote to consumers the beneficial role Realtors and real estate professionals play in America.

At Wells Fargo Home Mortgage, we appreciate the trust our real estate partners have placed in us. We apologize for this serious mistake."

Dan Frahm
Communications Director, Wells Fargo Home Mortgage

Will an apology suffice to smooth the ruffled feathers of the industry? It should, and just in time. Brokers and agents are getting fed up with commission squeezes and are looking for other ways to build revenues. The most lucrative is through offering mortgage lending services where the broker is in full control of picking their lending partners. Wells Fargo would be wise to consider the following:

1. Some Realtor organizations have co-branded in-house mortgage lenders to serve their consumers. They have freedom of choice in selecting lender partners. Wells Fargo co-brands with Edina Realty in an enterprise called Edina Mortgage where it shares 50 percent of its lending profits in exchange for being steered the loan customers. "We have over 30 joint ventures across the country like that," says Frahm. Would Wells Fargo like to have more?

2. Another way to make money is by the broker and his/her agents originating the loan themselves. Transaction management solutions are planned to put Realtors back at the head of the line where they are in the position to not only recommend lenders and their products, but originate the loans online themselves. Onepipeline's loan compliance engine, for example, may be back-dooring its way onto the largest transaction management platforms in the nation by enabling its national lender partners to offer partnerships to Realtors. Some of these lenders have invested heavily or plan to invest in transaction platforms such as HomeAdvisor's Lender/Realty Desktop and Homestore's eREALTOR.com, among others. Will Wells Fargo be included or left out?

Wells Fargo, an investor in Homestore, should recognize the significance of a Realtor-controlled transaction. "We know that Realtors have been an important piece, and without our relationship with Realtors we wouldn't be in business."

Editor's note: Wells Fargo has added a new page which promotes the use of Realtors by buyers. To read the article, click here.

Published: August 30, 2000

Use of this article without permission is a violation of federal copyright laws.

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Blanche Evans is the award-winning senior editor of Realty Times, the Internet's leading independent real estate news service. She is featured daily on the Realty Times Video Network in the "Realty Viewpoint" segment. Blanche has been named one of the "25 Most Influential People In Real Estate" by REALTOR Magazine, and has been twice recognized as a "notable." In 2005, she was named "Top Reporter Covering the NAR" by Delahaye-Bacon's. Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68. Order Now Review - Honors In 2006, Blanche was selected among scores of candidates to author two consumer real estate guidebooks for the National Association of Realtors: The NAR Guide to Home Buying, and The NAR Guide to Home Selling, Wiley & Sons. She is currently planning two new books for the NAR and its members.       Known for her keen insight into real estate industry issues and for her ability to make complex subjects easy to understand, Blanche is a sought-after keynote and continuing education speaker. Real estate organizations from MLSs, to brokerages, to franchisors, to associations hire her to provide up-to-the-minute analysis of real estate industry news and advice on how to improve revenues. Her passionate delivery, peppered with stinging wit, is a huge hit with audiences and fans. Don Klein, CEO Greater Nashville Association of Realtors, Blanche Evans, Richard Courtney, president 2007, GRAR "The GNAR membership meeting last week featured Blanche Evans as the keynote speaker. Her comments and insights resonated extremely well with those in attendance and we have had many requests for copies of her PowerPoint Presentation. She was a terrific part of the membership meeting and convention program!" - Don Klein, CEO Greater Nashville Association of Realtors Coverage from WSMV, Nashville - 8-14-2007 That Interview Guy - Get Inside The Head Of Today's Generation 2007 AE Institute Session - To purchase 2006 AE Institute Session - Parts 1 2 3 4 5 6 7 8 9 HouseValues Mastermind call - Parts 1 2 Blanche's fireside chat with Jeremy Conaway, HAR - Click here. To contact Blanche, email her at . For more articles by Blanche, click here.