In the last 30 days, 2 of my closings had buyers that used Wells Fargo for their Mortgage provider.

In BOTH cases, they did not meet the commitment target date (over 30 days from receipt of Loan Application in both cases) and BOTH times had terrible communication with their buyer clients, becoming unreachable and nonresponsive for days on end, and causing a huge amount of stress and anxiousness, and delays to the closing date.

To their credit, they did finally get both to the closing table, but the frustration is that the clients were both excellent buyers with credit in the 700s, low debt to income ratios, good salaries, and no judgements. These were both excellent buyers.

Whats concerning is that I have heard more complaints about Wells Fargo processing time - AND LOAN DENIALS - from other Realtors, and other Loan Officers in my area, than any other Mortgage company.

... and here's where it could get worse.

Today I received an email from Wells Fargo. And if their procesing time wasnt already known to be one of the longest out there right now, they issued this warning:

"On July 30, 2009, the new Housing and Economic Recovery Act (HERA) laws will go into effect. They require all mortgage lenders and mortgage brokers to help prevent deceptive lending practices and protect customers by helping them become more informed. We're proud to say these goals align with the responsible lending practices for which Wells Fargo Home Mortgage - the nation's #1 residential mortgage lender - has long been recognized.

Most of the changes will be transparent to the homebuyer and the REALTOR® or Builder. However, there are new compliance requirements that we all need to prepare for that may impact the process and timelines for mortgage financing, and therefore, could impact the timing of closing dates."

SO !!!!

If you have a client who has chosen Wells Fargo for their Mortgage provider, beware that you may want to add in a few extra weeks for Commitment Approval, and also understand that your anticipated closing date may well be delayed.

 

 

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53 Comments on If you thought Wells Fargo Mortgage process time was frustrating now ... just wait til after July 30th !

20 Most Recent Comments Displayed Show All

JUL
11
2009
874,720 Points 154 Featured Posts Localism Sponsor Outside Blog Hit Router Attended Rain Camp Called Shot Master

I got that same email, three times from three different Wells Fargo lenders. HERA will be another gov't intervention mess that has good intentions.
9:58am • #34
655,774 Points 10 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

We had a representative from WF explain all the changes a couple of weeks ago........it is really going to shake up the way we do business.  It will be more important than ever to help the consumer understand how this will affect their closing timelines.
12:58pm • #35
606,726 Points 71 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

Leesa - Unfortunately the horizon doesnt look too promising :o(

Mary ! - lol, I was jus' kidn, I know that their operations were great for a long time, and their other services are still probably excellent, but like you said, if the mortgage process takes too long, the consumers wont hang around. Cheers Mary Happy Saturday, now go find some diamonds in them there hills of Red Feather :o)

Missy - Yup, and I think there's probably more hurdles to come.

Ann - Thats exactly what we need to do - be clearer than ever with regards to what the consumer may expect  in terms of worst case timing. It wont make coordination any easier thats for sure !

 

 
1:29pm • #36
396,963 Points 17 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Sheldon - I never use Wells Fargo but have heard a lot of these stories. At least they tell people up front that (or so I have heard) that it will take them a minimum of 45 days to process the loan.
3:55pm • #37
606,726 Points 71 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

John - I have heard that, but I have also dealt with them stringing clients along for weeks with little or no communication. We'll have to see if it gets better with time !
5:19pm • #38
1,913,507 Points 386 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

EEEEK!  When did it get so hard?  Well, it's never been exactly easy, but this is getting crazy~
6:43pm • #39
465,416 Points 9 Featured Posts Called Shot Master

Howdy Sheldon-Talk about a bad forecast. This is worse than a thunder boomer. Have a great weekend, <SMILE>
7:30pm • #40
606,726 Points 71 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

Pat ! - Unfortunately I dont think it will get any easier any time soon :o(

Sharon - Lets hope its a quick storm and passes to a brighter process soon !
8:13pm • #41
389,734 Points 28 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

Well that just stinks...I guess I've been lucky here.  We can get them closed easily in 3 weeks or less.  I don't use Wells Fargo.  I certainly won't now!  I guess this means even my quickies will slow down.  First I've heard of it.  Thanks for the heads up!  Guess I'd better call my favorite lenders and see what is going to happen in my neck of the woods :)
10:11pm • #42
655,247 Points 29 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

Sheldon, Thanks for the heads up!  To be quite honest for the most part I have found banks to be on the unresponsive side. 
10:47pm • #43
738,077 Points 231 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Sheldon....  I have been wanting to write about this, and naming a few other lenders with this same delay/processing time.  But coming from a lender might not have sounded as good. And this angers me more when the borrowers are way beyond qualified.  I just took a borrower from another lender 3 weeks ago and closed it in 9 business days. These weren't perfect borrowers, but I told everyone involved from day one, that we might not make the settlement date, but that we would try. I missed it by 2 days, but I told everyone 7 days before settlement, that we would miss the settlement date by 2 days. What angers me about Wells and so many others is that they won't let you on to believe this... but take your deal and then you find out the negative when it's too late. PS...  I can close these in less than a month, meaning commitment would be there on time, as long as I had some time.. say 2 weeks, if they are that strong of a borrower.;o)  PPS...  what ever happened to my tax credit client?  The one that you got because you were talking about my blog?  ;o(

 

@Elizabeth... it might sound great to say that you can get these closed easily in 3 weeks or less. Two close a deal in 3 weeks, from start to finish, that borrower needs to have all docs to that loan officer at that time.. and appraisal out the door and back in 4 days or so. Anything short of this, would be right around the 3 week mark. But to say easily?  hhhhhmmmm  rut row.  Even in a slow market, less than 3 weeks was not always easy.   Just my .02.

jeff belonger
11:04pm • #44
JUL
12
2009
606,726 Points 71 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

ERCG ! - Glad to hear things have still been pretty smooth with your transactions :o) I hope that things dont get worse for all of us ! We'll have to see. Hope you are well Aunt Beth !!!!

Marchel - It's weird, I have dealt with both extremes - some banks that are very unresponsive, and some that I can reach whenever I need them. Wells was closer to the former !!!!

Jeff ! - Well you summed it up as I see it. It's subjective to the Loan officer and lender individually. I have worked with some consistently reliable LOs that like you HAVE come through almost religiously in time for the projected close date. But there are some, that have just made the process like pulling teeth !! ...Oh and the car wash lead is waiting until after his wedding day, but he still has my card thanks to overhearing my conversation about your blog ! lol !
8:35am • #45
JUL
13
2009
405,899 Points 6 Featured Posts Localism Sponsor Outside Blog

Dear Sheldon,

I have not had a problem with Wells Fargo. In fact my local Wells Fargo lender, Bernie Bernfeld will actually go to the closing WITH YOU to take care of any issues. When was the last time you had a lender do that?! Bernie rocks and I know all of his loans will be seamless and easy! Better luck next time!

Betina
11:45am • #46
606,726 Points 71 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

Betina ! I wish we all had a BERNIE !

... he's clearly how all loan officers should be :o)

Cheers !

Sheldon
3:42pm • #47
JUL
15
2009
5 Featured Posts Attended Rain Camp

Betina there are a number of us that attend closings, and many of us with better turn times. We're called your Mortgage Bankers and Brokers who the big banks are trying to squeeze out of business.

Providing a mortgage is a service so when there is bad service what do you have? Find your team members who can and do deliver and then stay loyal to them. They will be worth their weight in the gold they help you earn!

More than ever folks, our business is all about relationships!

Gerry Suarez, Jr.

Your FHA Loan Pro!
11:20am • #48
JUL
16
2009
243,011 Points 29 Featured Posts Localism Sponsor Outside Blog

This is all we need.  Getting to the closing table where Wells has been involved lately has been an exercise in futility.
12:20am • #49
JUL
26
2009

Wells Fargo is awful, I applied for a mortgage back in April and got a pre-approval, started sending them all documentation right away, before we found a house.  Got an appraisal and an inspection completd within two weeks of finding a home I began asking for the committment letter. The day I was suppose to get the letter, the loan officer says my file has been chosen to be audited.  Every day she was asking for something, I felt is was so ridiculous. I thought I had already provided them with everything.  For four weeks I kept being asked for documentation. I provided them with what they asked for.  I express concern to the loan officer, she said there was nothing to worry about, it was standard. After waiting for a commitment letter for four weeks, I get a call saying the income was not sufficient. I was so angry, I wasted so much time with them and money.  I would like to get my money back for the appraisal.I would never recommend Wells Fargo.
Valerie
12:00pm • #50
OCT
20
2009

Thought I was the only one with problems from WellsFargo. Intake person was really responsive when taking the application. However, once application was approved, things got anal and people became hard to find. We've missed closing date several times and they consistantly find wording on the contract as to  why loan documents are not completed. STAY AWAY FROM THEM!
Bob
5:20pm • #51
AUG
04
2010

DE Capital Mortgage is the worst company you could possible work with. Avoid them at ALL costs, They say they work with wells fargo underwritters? BS. Useless. 
John Patterson
2:15pm • #52
JUN
20
2011

WF is living up to their reputation  "SLOW, SLOW, SLOW" .  With the look of this comment report sound like this could be a Karoke Song.

Maybe I'll sing it at Karoke on Friday when I go to relieve the stress I'm receiving from them not closing on time.

I got the BB King and Lucille Blues and at this rate I need "tree jobs mon" to make money in this market.

 

 
Realtor in the Poconos
8:44pm • #53

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