Comments on: Wells Fargo Whacks Brokers Again on Jumbo Loans

By: Kent

Kent — Fri, 02 Nov 2007 16:31:02 +0000

Say NO to HR3915!
If you have not seen this petition here is a chance to let our “lawmakers” know what a bad bill this is. Please let others know about this petition so we can keep this foolishness from becoming law.

http://www.PetitionOnline.com/HR3915/

By: Russ

Russ — Fri, 02 Nov 2007 16:02:03 +0000

Morgan:

I agree that if the trend continues it will be bad. However, the beauty of a capitalist market is that someone will always step up to the plate when there is money to be made. While Wells is playing screw the broker, there are other wholesalers who are courting brokers too.

From my vantage point, the only thing stopping brokers is idiotic legislation. These banks have never been able to go head to head with brokers on price. So unless someone succeeds in outlawing being a mortgage broker, there will be plenty of other banks stepping in to fill the void.

By: Morgan Brown

Morgan Brown — Fri, 02 Nov 2007 03:41:29 +0000

Paul – I agree; it’s not going to be just confined to wholesale, but wholesale is going to feel the pain first.

By: Morgan Brown

Morgan Brown — Fri, 02 Nov 2007 03:40:23 +0000

Russ – I agree with you that by eliminating brokers they’re going to inflate rates; I think that is a given. While I think its great that you have “your banks” that beat the pants off of Wells Fargo the trend of more and more banks away has to leave you with more than a “who cares?” attitude. It’s not any one bank that’s the problem; it’s the disturbing trend. Banks can disappear one-by-one and we can say “who cares” until we turn around and there are only a handful left; and then brokers are faced with the same anti-competitve prospects that eliminating wholesale portends.

By: Paul Hiller

Paul Hiller — Thu, 01 Nov 2007 23:21:40 +0000

Way to go Russ!

By: Russ

Russ — Thu, 01 Nov 2007 18:23:55 +0000

Who cares… I stopped using them about 6 mos ago. There are plenty of other lenders with better rates.

I just beat Wells Fargo retail on a $1.4 million dollar deal with 20% down by almost a full point in rate and about a grand less in closing costs. They were the “preferred lender” in the development. I don’t even want to get into a cost savings to my client on that one. To make matters even worse, that is with me making a full 1 point in SRP as a correspondent. How about that Congressman Frank?

If consumers and commie consumer groups think brokers are bad, wait until the banks get their way.

By: Paul Hiller

Paul Hiller — Thu, 01 Nov 2007 04:59:19 +0000

I?m more surprised that it took this long. They are just the first. I can?t see how any of the investors buying non agency paper would look at a 20% equity cushion as remotely safe in this market. The retail rate sheets will be there soon.