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If Wells Fargo had any such policy – then definitely its hard to see how they would have gotten away with it for so long so I do concure with you there however I do have issues with what the Brokers may have been doing.What kind of proof is there that this actually went on – Most of the brokers I know did not do anything like this
Do you think the Wholesale Market will still be booming in the next 3 years? Be great to hear other thoughts!!
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You are incredible! Thanks!
Just a very quick comment to say I really enjoy your show. I was just recently introduced to TBWS when you guys came to Denver a few weeks ago and I’m now a dedicated follower. Thanks again!
Flly 90% of the comments I write for this show get dumped.
I tried this morning 15 times to post a comment and each time it came back you have already made this comment?
Since the comment didn’t post in the first place, there must be some reason why it didn’t post at all?
What is that reason? I am wasting significant amounts of time writing this stuff and if it is being rejected for some reason then lets have it.
other wise I’ll stop wasting my time.
No answer to these questions is not polite!
Randy – and I thought it was just me!.. I haven’t been able to get an answer either. In case you don’t see this, I am putting it on the 7/17 comment board as well.
why does this system refuse to post my comments?
Am I on some kind of “list”?
Well said. I like the part about Bernie – steal from the 1% and you get caught.
( all these frivolous suits are making a lot of people rich)
Wasn’t it Clinton who passed the, if anyone can breath give them the loan otherwise its discrimination?
Wonder if the suit monies goes to help the campaign now! wouldn’t that be a freak en kicker !
I am also amazed WF hung on this long. It’s been years since I used them and they were terrible then. They are much better at correspondent and retail lending, and obviously still are. I look for their correspondents to pick up the slack. I don’t know if any of you saw this, but I did see minority borrowers pay more than they should on many occasions, based upon the HUDs that I saw, often from brokers within their own community. I hate the existing comp redstrictions, but I have to say that it makes it more difficult to charge one borrower more than another, regardless of the reason.
Grat video blog today. I am glad to see someone sticking up for WF. They are getting a bad wrap.
Wells already wanted to get out of the Broker business. They are now trying to make it look like this discrimination (which I totally believe they are guilty of) was a product of their broker channel. Your don’t write 175M dollar checks because you didn’t do anything wrong. Let’s not forget, Wells Fargo RETAIL is the company that gave us HVCC and the whole appraisal management BS due to their strong arm tactics. Don’t blame Cuomo or government regulators for regulations that are the direct result of ACTUAL fraud and malfeasance by the Big Bank Cartel. Wells Fargo Bank has a history of abuses and they always try to deflect the criticism and say “It’s the mortgage brokers that did it, not us!”. I say good riddance to a scum bag organization.
Spot on today, good show!
Back in the early/mid 2000′s Wells sub-prime AE’s were required to fun all sub-prime submissions through LP to see if they could get an automated approval. If they did, they had to refer that submission to their conforming counterpart.
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I see this as a bigger problem perhaps than many. If Wells was servicing 21% of the brokered deals, then other lenders may say, “great, more for us”. My thought, however is if Wells felt they had to cut the brokers, then other lenders will consider it too risky to work with them OR the lenders like Wells who are buying loans from correspondents will force them to stop working with brokers. If brokers are deemed bad, no one will want them. I hope I am wrong, but I see this as the last straw for independent brokers.
Frank & Brian:
Fact is FHA’s current cash reserves totaled 33.7 billion – a $400 million dollar increase from a year ago. These reserves are fully capitalized to pay 30 years’ worth of “expected” claims and losses. By comparison the Financial Accounting Standards Board or FASB only requires private financial institutions to hold reserves for losses over the next 12 months. FHA has 30 times that amount in their cash reserves PLUS another 2.55 billion in excess capital reserves. Why is FHA required to hold 30 years worth of expected claims & losses?
Our industry was destroyed a lot longer before than under the present administration…..we should know because we let it happen….We didn’t stop this destruction because we were too busy making money due to the lack of oversight…Now we have to pay the piper and we are bitching because we have a bar tab!……The fault isn’t with the democrats or with the republican party….ITS WITH BOTH PARTIES…..politicians are ALL the same, they only give themselves different team names so they can tell each other apart when they arrive to pick up their special interest checks……and they wear different color ties so they don’t have to talk to each other….a little like the bloods and crips…….same color code…..same overall business plan and certainly no different a work ethic….someone else noted that Bernie Madoff is the only one jailed because he stole from the 1%……and got caught…If we jailed all of the people that caused this fiasco we would need bigger jails…….but bitching about the present administration doesn’t help, it also doesn’t hold water..lets look at the real reason we are in this mess….its you and me because we let this happen to our industry by not supporting the factions OF our industry…now there isn’t enough support from each other as the banks have pretty much decimated the help by dividing and conquering…..first it was the appraisers…and nothing was done….then the loan officers and brokers…the bitching got intense……the next hurdle for the banks are the Realtors and if you think that NAR has the power……wait until the banking industry and special interest groups flex their pecs….its the golden rule….they have the gold…they make the rule….
it all comes down to tyrannical monsterous gov’t corruption!
So remember to ALWAYS Guck the Fovernment!
Boycott Park County Colorado and ALL GOV”T in USA!
I knew loan officers at Wells and one of the “Policies” that caused this problem for them is that if you were a loan officer at Wells you worked either on the subprime side or the A Paper side. So if you got a borrower on the subprime side that was “A” Paper you could refer them to the “A” Paper side and got a small nominal commission or you could try to sell them on doing a subprime loan and make a lot more money. So what do you think the Loan Officers tried to do???? They put “A” Paper borrowers into subprime loans because that is what they were allowed to sell!
since 2003ish. i know for a fact as i closed about deals thru this process… Well’s sub prime required the borrower and MLO to sign a form stating that they knew they were being placed into Subprime loan, even tho they qual’ed for an A paper loan. the reason for this placment was the sub prime side offer a great sub 70% ltv 30y fixed with 3 year prepay that was 1 full point better in rate than Well’s GSE paper. didn’t Wells offer CRA products as well. maybe they just did not buy the farm as Citi did with CRA……on the funny side, i would say a large share of the indy brokers that did these shady thing are now employed by Well’s…Ironic.
FHA needs to bring back the “Spot” approvals for Condos. This action would allow thousands of buyers and sellers to purchase and sell units that FHA financed prior to 2010. Sellers have no choice but to Short Sale or Foreclose on the Units they bought prior to FHA negative impact on Condos that were sold with the “Spot” approval loans. Imagine owning a property that there was no loan program to sell it with….only Cash!
That is so true. And they need to relax the 50% owner-occupancy requirement. If a project falls just a few shy of that figure, it’s impossible for them to get back to the good side. As a result, all the values suffer when financing dries up. Typical government solutions full of unintended consequences.
The brokers role is to reach communities that lenders couldn’t or wouldn’t otherwise serve, so it stands to logic that they’ll originate a higher proportion of minority loans. So a ruling like this is punishing brokers for their own market efficiency (?).
While no one can say that FHA is “out of the woods” yet, its long-term prospects are encouraging. It is collecting the highest premiums in its history on the loans that are performing the best in its history.
The highlights are:
• The performance of recent FHA loans (FY 2009 & later), which now comprise 75% of FHA’s portfolio, is the best in recent history.
o FHA’s credit quality is the best in over 30 years. (Lenders have added “credit overlays” on top of FHA requirements.)
• Recent originations are having a positive impact on FHA’s portfolio.
o FHA’s total delinquency rate is at its lowest quarterly rate since 2005.
o FHA’s 30 & 60 day delinquency rates are lower than any quarterly rate in the last 10 years.
• FHA’s “problem” is the build-up of the number of seriously delinquent loans currently in the portfolio because of foreclosure processing backlogs.
2 weeks until Traverse City Michigan Mortgage Lenders Association Conference!!! Please send me your introduction information, I get the privilege to introduce you!
The over-regulation by Obozo and his henchmen at the CFPB is destroying our industry. The only way out of this is to make sure he’s not re-elected and to get Romney to dismantle the Dudd-Frank bill.
That would be a great start.
I am surprised that Wells hung on this long to their Wholesale…and as far as the lawsuit, our Department of Injustice does not have the man or
brain power to chase down each brokerage firm involved. Goes back to the Ole Deep pockets theory. I hope Eric, Timmy and the group have a nice junket from the proceeds of this fine.
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