Wells Fargo Mortgage Limits Lending
Wells Fargo Mortgage, the nation’s second largest mortgage company, and one with a spotty past, has announced that they will no longer be permitting third-party brokers to issue subprime loans.
The company will continue to offer such loans directly to consumers (which is the method I had pursued when I ran into the loan officer’s ‘encouragement’ to fudge the truth. Hopefully they’ll proceed to further reform their in-house lending practices.
Some see this move as an action towards debt consolidation by the bank in order to limit loan value in a declining market. Those wishing to avoid mortgage payments to the lender may wish to consider paying down their loans early via mortgage acceleration or bi weekly mortgage payments.
This move is seen as being indicative of widespread broker-abuse and predatory lending problems which have helped contribute to the increasing number of foreclosures across the nation.
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