Today we received this report: “One thing that stands out about the recent optimization with HFC/Beneficial is the people being optimized. The same people that signed off on making $45k second mortgages, with no appraisal, using stated income, on double wide mobile homes, are still “positioning us for future success”. It is a joke, the same people that were signing off on sending $5k “live checks” in the mail, telling employee’s “everyone works overtime” are still sinking this ship. As an educated person in banking/finance, I knew this was a chop shop of a company when I started. I was happy to get the “financial” experience to my resume though.
But seriously, I have been employed with this company for several years now, and I can count on one hand the people I actually helped. Just for example, say a customer was wanting to consolidate $30k in bills, they have a 1st mtg for $100k and a home value of $150k. If they were approved(in the “good ‘ol days) and the home appraised at $170k, you better believe someone like Rob Ohan had his heel on the DGM’s neck, and the DGM had his heel on the DSM’s neck, and the DSM had his heel on the BSM’s neck, and the BSM had his heel on the AE’s neck that the customer took all the cash, then a $15k “side loan”.
So we now have a customer that had a 7.2% on their 1st mortgage that we took to a 10% on $100,000, just to pay of $30,000, and gave them another $15,000 at 18%. Now we are sales people, right? So that being said, we are told to give people “financial advice on consolidating debt”. With the above scenarios, who do you think should be “optimized”? Kathy Madison recently had a country-wide conference call where she stated that “optimization is a positive thing”. It is Kathy, if you and the rest of the executives that sunk this ship in the first place were part of the optimization. Seriously, we are paid for performance, so when we don’t hit our “goals” we are written up, then fired. So with the performance of the people that were signing off and pushing these products, I would offer termination, not optimization.
AIB(auto refi) is another example I have seen talked about on this site. We were pushing customers to refi their auto loan with us to skip a payment, which sounds good right? Wrong — if you are raising the interest rate, and extending the term. This is “Beneficial” to a customer? So finally I guess someone realized how fraudulent this was and said “We now have to meet benefits to do this”. Really? Wasn’t that our purpose to the customer all along? The answer is NO. In closing, the “Subprime” era is over, and rightfully so. The only way to keep this company afloat is to “optimize” the predators that put it in the dirt.”
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