Wells Fargo Pulls The Rug On New FHA Streamline Refinance Mortgages

The new FHA Guidelines for Streamline Refinancing FHA Insured Mortgages, which had endorsed FHA Case Numbers prior to June 1, 2009, had no sooner gone into affect last week than Well Fargo pulled the pug on accepting applications for them unless they were already servicing the loan.  This came as a major blow especially to brokers, wholesalers, and correspondent lenders.

Luckily for us at McCue Mortgage it did not have much impact on us, because we have other investors that are more than happy to service new FHA Streamline Refinance Mortgages.  Never the less this was a pretty cheap shot by Wells Fargo, and I am sure it will be one that will at some point come back to bit them in the donkey.

These past two week have be among some of the highest volume weeks that we have had since I have been with McCue Mortgage.  We have seem more than double the volume of what would be considered a very good week, and it is all attributed to the new FHA Streamline Refinance Guidelines.

Anyone who has an FHA Insured Mortgage that has a Case Number that received endorsement prior to June 1, 2009 should seriously consider refinancing.  FHA interest rates prior to June 1, 2009 were at least 5.25% and higher, so each of these loan can see a monthly savings of $130 plus dollars per about $100,000.  That is serious savings for most of the homeowners that can qualify for this program.

It was reported that so far more than 126,000 homeowners have than advantage of the new FHA Streamline Refinance Guidelines, and there are thousands more that will be taking advantage of these new guideline in the coming weeks.  If you have a FHA Insured Mortgage that received endorsement prior to June 1, 2009, act now before FHA pulls a cheap stunt like Wells Fargo, and pulls the rug out from under you, by changing the  rules again.  Don't be one of the ones that will later say, I should have done it but didn't.

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 Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 orgsouto@mccuemortgage.com