Wells Fargo does what?

By
Real Estate Agent with The De Fusco TEAM Keller Williams Arizona Realty

 

Realtor Magazine says...

Wells Fargo Says Credit Score of 500 OK

In a long-awaited shift, Wells Fargo is providing FHA mortgages to borrowers with credit scores as low as 500. The move comes after the National Association of Realtors® and FHA Commissioner David Stevens, among others late last year, criticized the country's major banks for requiring credit scores as high as 650 in some cases before making loans. At NAR's annual conference last year in New Orleans, Stevens said banks' credit policies were out of sync with the FHA and artificially restraining home sales by as much as 20 percent. Under its new policy, Wells Fargo will accept borrowers with credit scores of 500 to 579 if those borrowers can make a down payment of at least 10 percent; gifted funds or other down payment assistance is not allowed. For borrowers with credit scores of 580 to 599, borrowers must put down 5 percent, with the same restriction on gifts and assistance funds. Borrowers with credit scores of 600 or higher can make a 3.5 percent down payment. The new policy took effect Jan. 15.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
ActiveRain Community
Location:
Arizona
Groups:
Active Rain Newbies
Keller Williams 'Rainers
Metro Phoenix Active Rainers
Activerain MLS Online
ActiveRain Rockstars

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainer
56,185
Tommy Taylor
Taylor Properties & TexasForSale.net - Kerrville, TX
CNE- Texas Hill Country Realtor

Wow- Thanks for sharing this. I can't believe I had not already heard of this from one of my mortgage brokers.

Feb 27, 2011 12:37 AM #1
Rainmaker
1,099,516
Jeffrey DiMuria 321.223.6253 airRErealty.com
airRErealty - Melbourne, FL
Florida Space Coast Homes

wow...that is amazing...is this not the same situation that got us into trouble in the first place?

Feb 27, 2011 12:39 AM #2
Ambassador
2,353,930
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

You know I read about this on AR a couple of days ago when someone else commented they'd seen it.  I called my local WF guy and he said nope, nada, nu-uh that it's 600 minimum.  So if it has happened somewhere it hasn't filtered down to my LO yet.

Feb 27, 2011 12:43 AM #3
Rainmaker
403,390
Tni LeBlanc
Mint Properties, Tni LeBlanc (805) 878-9879 - Santa Maria, CA
JD, MA, REALTOR, CalBRE # 01871795

Not sure if this is a great move or not.  Why not get the buyers back in who have perfect credit except for a short sale before folks with marginal credit histories?  Isn't this how we got in this mess?

Feb 27, 2011 12:59 AM #4
Rainer
52,042
Michael C. Price
Keller Williams - Ann Arbor, MI
Ann Arbor-Real Estate Strategist

Many lenders have very weak marketing to their referral partners. There are many resources in the to market these types of programs but most do not use them.

Feb 27, 2011 01:03 AM #5
Ambassador
1,319,496
Michelle Carr-Crowe-Selling Silicon Valley Homes in Top Schools San Jose, Cupertino, Saratoga, Palo Alto-Just Call 408-252-8900
Just Call (408) 252-8900! - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

Thanks for sharing this important piece of info.

Feb 27, 2011 01:03 AM #6
Rainer
320,352
Jay Schmitt
Keller Williams Keystone Realty - Gettysburg, PA
Gettysburg Real Estate Agent

That could be some good new to help stimulate the market a bit.

Feb 27, 2011 01:39 AM #7
Rainmaker
908,388
Pamela Seley
West Coast Realty Division - Murrieta, CA
Residential Real Estate Agent serving SW RivCo CA

Linda, I think Wells Fargo will be dominating the mortgage market. They know what they are doing.  If they don't lower the standards, there won't be any qualified buyers to buy short sales and foreclosures.

Feb 27, 2011 02:11 AM #13
Rainmaker
240,974
Doug Bullwinkel
Academy Mortgage Group - Roseville, CA
NMLS #281609

Wells Fargo has this available through their retail channel only.  They probably forgot to mention the overlays  that come with this.  Much higher rates and fees attached.  It's great to have these additional options available to borrowers with low  credit scores.  As agents we all  need to be responsible and not put people into homes that they shouldn't purchase.  There is a reason for someone having a 500 credit score.  This has been tried before with 20% to 25% down payments.  Remember the "sub-prime" loans of the recent past?  Buyers are upside down on day one with an FHA loan so complicating the problem with bad credit is not the best combination.

Feb 27, 2011 02:55 AM #14
Rainmaker
286,294
Linda De Fusco
The De Fusco TEAM Keller Williams Arizona Realty - Scottsdale, AZ
The Arizona Rainmaker

I was just a little surprised that this was not marketed to the Realtor or consumer. The two MB I work with haven't mentioned it at all.

Feb 27, 2011 08:39 AM #15
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
286,294

Linda De Fusco

The Arizona Rainmaker
Ask me a question
*
*
*
*
Spam prevention