| New WMC CEO Draws Scrutiny
Wells subprime unit dogged by ACORN under former executive’s tenure October 30, 2003 By PATRICK CROWLEY
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| Three months after departing Wells Fargo Financial to spend more time with his family, Daniel W. Porter has reemerged as CEO of a California-based subprime lender.Porter has been hired to run WMC Mortgage Corp., which describes itself as a “wholesale non-prime lender.” The company’s headquarters are in Woodland Hills, Calif., and it says it does all of its loans through the Internet via it’s WMC Direct unit.
WMC spokesman Frank Harper said in a phone interview the company originates about $12 billion a year in loans, compared to Wells Fargo, a financial giant based in San Francisco that just reported third quarter residential mortgage originations of $161 billion. Porter oversaw Wells Fargo Financial, the company’s subprime lending arm. WMC President Amy Brandt will continue to oversee the company’s day-to-day operations, she said in a written statement. “Dan’s broad-based financial services experience and leadership qualities and proven track record were the right combination for WMC as it advances to the next level,” Brandt said. “It’s a testament to the company’s success that we were able to attract an executive of Dan’s caliber.” Porter replaces former WMC CEO Scott McAfee, who according to Harper, left the company on his own accord. Porter oversaw Wells Fargo Financial from 1999 until July. According to WMC’s statement, the company’s net income grew 46% from $247 million to more than $360 million, receivables increased 60% to $16 billion and more than 500,000 new customers were attracted under Porter’s watch. When he left in July, Porter said it was so he could “bring more balance to my work and home life,” according to a statement Wells Fargo released at the time. “I want to be closer proximity to my extended family and spend more time with them,” he said. But during his tenure at Wells Fargo, Porter and the entire company were dogged by the Association of Community Organizations for Reform Now (ACORN), a consumer advocacy group that has accused Wells Fargo of predatory lending. “Any change at Wells Fargo Financial could hardly be for the worse,” ACORN national president Maude Hurd said in a statement reacting to Porter’s departure. “This branch of Wells Fargo makes predatory loans, charging borrowers, including borrowers with good credit, whatever it can get away with.” In a statement, Wells Fargo Home Mortgage CEO Pete Wissinger said the company has “a policy to follow all applicable laws.” “As the nation’s largest mortgage lender — and number one nationally in making mortgage loans to people of color, to low and moderate income home buyers and in low-to-moderate income census tracts — our reputation for honesty, integrity and commitment to customer satisfaction and community involvement is known across the financial services industry,” Wissinger said. ACORN spokeswoman Lisa Donner said with Porter’s hiring, WMC “will be on our radar screen.” “We’ll continue to deal with the problems we see at Wells Fargo,” Donner said in an interview, “but we are also going to pay attention to Mr. Porter and his new job as well.” Harper refused to comment on Donner’s statement and would not discuss any of ACORNs allegations dealing with Porter’s tenure at Wells Fargo. |
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Patrick Crowley is a political reporter and columnist and former business writer for The Cincinnati Enquirer. Email Patrick at: pcrowley@enquirer.com |
