Comments on: Sources: Wells Fargo to Eliminate 100% Financing http://blownmortgage.com/2007/08/27/wells-fargo-to-eliminate-100-financing/ #1 Free Home Loan Modification & Debt Relief Help For US Home Owners - Truths, Facts & News About the Mortgage Industry Mon, 09 Nov 2009 22:42:54 -0700 http://wordpress.org/?v=2.8.3 hourly 1 By: Tiltanator http://blownmortgage.com/2007/08/27/wells-fargo-to-eliminate-100-financing/comment-page-1/#comment-3702 Tiltanator Tue, 04 Sep 2007 21:21:34 +0000 http://blownmortgage.com/2007/08/27/wells-fargo-to-eliminate-100-financing/#comment-3702 At the end of the day, I can count 13 ZERO down programs: Flex 100, flex 100 IO, either option with LPMI. CalHFA, CalPERS, VA, FHA, My community, First House, Flex 40, Flex 40 year IO, National Dream. Not to mention, CalHFA goes to $590k sales price with conforming prices. Instead of complaining, perhaps we just go find a customer instead. Better yet, maybe you work an open house with these programs. You might just get lucky At the end of the day, I can count 13 ZERO down programs:
Flex 100, flex 100 IO, either option with LPMI. CalHFA, CalPERS, VA, FHA, My community, First House, Flex 40, Flex 40 year IO, National Dream.

Not to mention, CalHFA goes to $590k sales price with conforming prices. Instead of complaining, perhaps we just go find a customer instead. Better yet, maybe you work an open house with these programs. You might just get lucky

]]> By: Wasilla Real Estate News » Blog Archive » Wasilla Real Estate Market IS NOT DEAD http://blownmortgage.com/2007/08/27/wells-fargo-to-eliminate-100-financing/comment-page-1/#comment-3358 Wasilla Real Estate News » Blog Archive » Wasilla Real Estate Market IS NOT DEAD Wed, 29 Aug 2007 20:12:55 +0000 http://blownmortgage.com/2007/08/27/wells-fargo-to-eliminate-100-financing/#comment-3358 [...] Wells Fargo drops 100% financing [...] [...] Wells Fargo drops 100% financing [...]

]]> By: msdirectcompetition http://blownmortgage.com/2007/08/27/wells-fargo-to-eliminate-100-financing/comment-page-1/#comment-3269 msdirectcompetition Tue, 28 Aug 2007 22:27:58 +0000 http://blownmortgage.com/2007/08/27/wells-fargo-to-eliminate-100-financing/#comment-3269 So many different views. BUT it appears like everyone is arguing with each other but see the end game as the same result.. We failed at determing the proper amount of risk associated with loose guidelines. WE as mortgage professionals all have made loans to people that we knew didn't make the kind of money they needed to repay the deal if it reset or they tried to refi now that subprime rates are 3% higher. It is a sad reality but when your BM, BRS, WIFE, KIDS,and mortgage company all put pressure on you to "close the deal" and you have no one checking on whether it was right, you pull the trigger. Same as the used car salesman, insurance sales, investment advisor, LAWYER, Judge, Politician, and anyone else that has to make morales vs money decisions. Quit crying and get back to work. So many different views. BUT it appears like everyone is arguing with each other but see the end game as the same result.. We failed at determing the proper amount of risk associated with loose guidelines. WE as mortgage professionals all have made loans to people that we knew didn’t make the kind of money they needed to repay the deal if it reset or they tried to refi now that subprime rates are 3% higher. It is a sad reality but when your BM, BRS, WIFE, KIDS,and mortgage company all put pressure on you to “close the deal” and you have no one checking on whether it was right, you pull the trigger. Same as the used car salesman, insurance sales, investment advisor, LAWYER, Judge, Politician, and anyone else that has to make morales vs money decisions. Quit crying and get back to work.

]]> By: Denny http://blownmortgage.com/2007/08/27/wells-fargo-to-eliminate-100-financing/comment-page-1/#comment-3252 Denny Tue, 28 Aug 2007 17:59:15 +0000 http://blownmortgage.com/2007/08/27/wells-fargo-to-eliminate-100-financing/#comment-3252 Well, after years of interest only, negative am, goofy arms not to mention sisa & siva it wasn't a matter of if it would happen but rather when. There is absolutely no integrity in the mortgage market today. Until the demand for quality reappearss, we will stay in this rut. But it was actually worse. Anyone in the business during the 80 ' 82 recession knows what I mean. There was plenty of money, however people couldn't afford it at 14 to 18 %. Good things came from that recession. Less Competition. And it will happen in a big way again. Well, after years of interest only, negative am, goofy arms not to mention sisa & siva it wasn’t a matter of if it would happen but rather when. There is absolutely no integrity in the mortgage market today. Until the demand for quality reappearss, we will stay in this rut. But it was actually worse. Anyone in the business during the 80 ‘ 82 recession knows what I mean. There was plenty of money, however people couldn’t afford it at 14 to 18 %. Good things came from that recession. Less Competition. And it will happen in a big way again.

]]> By: Morgan Brown http://blownmortgage.com/2007/08/27/wells-fargo-to-eliminate-100-financing/comment-page-1/#comment-3249 Morgan Brown Tue, 28 Aug 2007 16:23:56 +0000 http://blownmortgage.com/2007/08/27/wells-fargo-to-eliminate-100-financing/#comment-3249 MS - When I get this email from my account rep this is what I go by: "We will still do full doc 100% with 20% seller carry back. Everything else is a gone. XXXXXXX Wholesale A/E Wells Fargo Home Mortgage" As I am not a professional news reporter I do not have contacts at Wells Fargo where I can call up and verify my AE's information - I go with what they tell me. If you would be willing I would be happy to bounce any WF news off of you prior to running it to see if there are differences between wholesale and retail in the future. By the way - I don't think that announcing the end of 100% financing is a bad thing. I think its a very prudent move by WF wholesale. 100% of today's value is likely to be 105% of tomorrow's. WF is smart to hedge against property devaluations to protect its financial position. MS –

When I get this email from my account rep this is what I go by:

“We will still do full doc 100% with 20% seller carry back. Everything else is a gone.

XXXXXXX
Wholesale A/E
Wells Fargo Home Mortgage”

As I am not a professional news reporter I do not have contacts at Wells Fargo where I can call up and verify my AE’s information – I go with what they tell me.

If you would be willing I would be happy to bounce any WF news off of you prior to running it to see if there are differences between wholesale and retail in the future.

By the way – I don’t think that announcing the end of 100% financing is a bad thing. I think its a very prudent move by WF wholesale. 100% of today’s value is likely to be 105% of tomorrow’s. WF is smart to hedge against property devaluations to protect its financial position.

]]> By: MS http://blownmortgage.com/2007/08/27/wells-fargo-to-eliminate-100-financing/comment-page-1/#comment-3248 MS Tue, 28 Aug 2007 16:05:04 +0000 http://blownmortgage.com/2007/08/27/wells-fargo-to-eliminate-100-financing/#comment-3248 Morgan, in case you did not know it.... Sources Confirm - 100% of Mortgage People Are Liars - We all know this is not true. However, if I were to make such a statement, in such general terms as the lead in for this blog, it could be just as damaging to all of our reputations. The proof being, I found this blog through a link from mortgageimplode.com So let's wonder.....what if I were to write a blog with the headline: Investigation Confirms XYZ Mortgage Stealing Cash From Client Bank Accounts? .....when in reality, the computer incorreclty double dipped for an authorized withdrawl from one client and the money was returned. I'm sure it has happened somewhere. It amounts to the same thing. A partial truth, a partial lie. I'm sorry that mortgage brokers are being hurt the way they are with this meltdown, many, many good people will be in trouble. I work for Wells and I am proud of it. I take offense when such garbage mis-information comes out about my company. By simply adding "the suspected program changes will only affect mortgage brokers" puts a clompletely different angle on the blog. Morgan, in case you did not know it….

Sources Confirm – 100% of Mortgage People Are Liars – We all know this is not true. However, if I were to make such a statement, in such general terms as the lead in for this blog, it could be just as damaging to all of our reputations.

The proof being, I found this blog through a link from mortgageimplode.com

So let’s wonder…..what if I were to write a blog with the headline: Investigation Confirms XYZ Mortgage Stealing Cash From Client Bank Accounts? …..when in reality, the computer incorreclty double dipped for an authorized withdrawl from one client and the money was returned. I’m sure it has happened somewhere.

It amounts to the same thing. A partial truth, a partial lie. I’m sorry that mortgage brokers are being hurt the way they are with this meltdown, many, many good people will be in trouble.

I work for Wells and I am proud of it. I take offense when such garbage mis-information comes out about my company.

By simply adding “the suspected program changes will only affect mortgage brokers” puts a clompletely different angle on the blog.

]]> By: Russ http://blownmortgage.com/2007/08/27/wells-fargo-to-eliminate-100-financing/comment-page-1/#comment-3247 Russ Tue, 28 Aug 2007 15:44:08 +0000 http://blownmortgage.com/2007/08/27/wells-fargo-to-eliminate-100-financing/#comment-3247 Morgan: I think this is an overreaction and once again is showing how the mortgage market has gotten so efficient with securitization that all common sense has been thrown out the window. Deals either fit in the box or they don't. Another case of throwing the baby out with the bath water. All 80/20s aren't made to fast food workers overstating their income. A large number of my clients have very high incomes but very little savings because they are recent professionals. They absolutely love 80/20s and you know what? They pay their mortgages on time. I have a couple now doing an 80/20... they have a household income of $300k and very little savings since they both just completed graduate school at Harvard and MIT. They want to buy a house, but they don't want to sink all their cash savings into a down payment that they can't access in case of an emergency. Sure they can save up for the down payment in about a year, but I fail to see how that would lower the risk of the bank with these types of borrowers. I would put my 80/20 clients with high incomes and six months reserves up against a borrower that puts 5% down with a 49% DTI and 1 month reserves anyday. Which do you think is most likely to default? Morgan:

I think this is an overreaction and once again is showing how the mortgage market has gotten so efficient with securitization that all common sense has been thrown out the window. Deals either fit in the box or they don’t. Another case of throwing the baby out with the bath water.

All 80/20s aren’t made to fast food workers overstating their income. A large number of my clients have very high incomes but very little savings because they are recent professionals. They absolutely love 80/20s and you know what? They pay their mortgages on time.

I have a couple now doing an 80/20… they have a household income of $300k and very little savings since they both just completed graduate school at Harvard and MIT. They want to buy a house, but they don’t want to sink all their cash savings into a down payment that they can’t access in case of an emergency. Sure they can save up for the down payment in about a year, but I fail to see how that would lower the risk of the bank with these types of borrowers.

I would put my 80/20 clients with high incomes and six months reserves up against a borrower that puts 5% down with a 49% DTI and 1 month reserves anyday. Which do you think is most likely to default?

]]> By: Good to Go Pile . . . « Trading for the Masses http://blownmortgage.com/2007/08/27/wells-fargo-to-eliminate-100-financing/comment-page-1/#comment-3245 Good to Go Pile . . . « Trading for the Masses Tue, 28 Aug 2007 15:36:16 +0000 http://blownmortgage.com/2007/08/27/wells-fargo-to-eliminate-100-financing/#comment-3245 [...] Sources: Wells Fargo to Eliminate 100% Financing [...] [...] Sources: Wells Fargo to Eliminate 100% Financing [...]

]]> By: Morgan Brown http://blownmortgage.com/2007/08/27/wells-fargo-to-eliminate-100-financing/comment-page-1/#comment-3244 Morgan Brown Tue, 28 Aug 2007 15:30:55 +0000 http://blownmortgage.com/2007/08/27/wells-fargo-to-eliminate-100-financing/#comment-3244 MS - the source was a direct email from my wholesale WF rep out here in California and it has been confirmed above by other WF reps as well. the source was right inside the company on the wholesale side... MS – the source was a direct email from my wholesale WF rep out here in California and it has been confirmed above by other WF reps as well. the source was right inside the company on the wholesale side…

]]> By: sandy http://blownmortgage.com/2007/08/27/wells-fargo-to-eliminate-100-financing/comment-page-1/#comment-3243 sandy Tue, 28 Aug 2007 13:54:33 +0000 http://blownmortgage.com/2007/08/27/wells-fargo-to-eliminate-100-financing/#comment-3243 I think it is greed of the mortgage brokers/agents, account executives, and managing officers at wholesale branches, and senior management of the retail, correspondent and wholesale companies. These guys made LOTS OF MONEY!!! And don't give me the sad story about "poor" borrowers, they LIED too!!! If you are claiming language barrier, most of their agents spoke their language. I have seen loans CHURN as well, refied every 3 months just so the mortgage broker/agent could cash in. No cost refi's, borrower thinks they are getting a good deal, but in reality they aren't. Most employees that are now without work who did the grunt work were victims of their failures. Notice I said "most", some of the employees were just as guilty because they looked the other way. The investors? They were asking for solid products which they received some "misinformation" as to the performance. The guidelines were shoddy, and due diligence probably with look the other way auditors. Look at the guys that securitized the loans. As for the 100% financing, there are other products that can help borrowers, but you have to have MI.. Gee is that a bad word? This is not an OVER REACTION, it is a cleansing.. Get used to it. I think it is greed of the mortgage brokers/agents, account executives, and managing officers at wholesale branches, and senior management of the retail, correspondent and wholesale companies. These guys made LOTS OF MONEY!!!

And don’t give me the sad story about “poor” borrowers, they LIED too!!! If you are claiming language barrier, most of their agents spoke their language.

I have seen loans CHURN as well, refied every 3 months just so the mortgage broker/agent could cash in. No cost refi’s, borrower thinks they are getting a good deal, but in reality they aren’t.

Most employees that are now without work who did the grunt work were victims of their failures. Notice I said “most”, some of the employees were just as guilty because they looked the other way.

The investors? They were asking for solid products which they received some “misinformation” as to the performance. The guidelines were shoddy, and due diligence probably with look the other way auditors. Look at the guys that securitized the loans.

As for the 100% financing, there are other products that can help borrowers, but you have to have MI.. Gee is that a bad word?

This is not an OVER REACTION, it is a cleansing.. Get used to it.

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