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Wells Fargo Closing Guarantee - For Real or a Marketing Gimmick?

By
Real Estate Agent with COMPASS DRE# 01339266

Wells Fargo Closing Guarantee - For Real or a Marketing Gimmick?

Wells Fargo makes a bold statement on their website about their "Closing Guarantee" .... "We will close your loan on or before the closing date stated in your original contract or we'll write a check equal to your first month's principal-and-interest payment".

Wells Fargo is late on funding a client's loan and despite my repeated emails to the Loan Processor and Manager, neither of them have responded to my inquiry as to whether the bank will honor their guarantee for my buyer.

Their website goes on to say "Our Wells Fargo Closing Guarantee reflects our commitment to excellence."

I think a simple returned call or reply to an email in a timely manner would reinforce their pursuit of excellence.

Comments (22)

Steve Shatsky
Dallas, TX

Hi Stewart... Is this a new guarantee?  I had not heard of it before reading your post.

Sep 22, 2009 09:17 AM
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce

Sooo...how are you spendng the guarantee,,,is it split with the realtor ? :) !

Sep 22, 2009 12:13 PM
COMPASS PALM SPRINGS | Stewart Penn
COMPASS - Palm Springs, CA
COMPASS Palm Springs - Broker Associate

Steve - I'm not certain how long Wells has been offering this guarantee ... I was told about it my a mortgage consultant but prior to that, I hadn't seen it being actively promoted. 

Sep 22, 2009 12:13 PM
Jim Hale
ACTIONAGENTS.NET - Eugene, OR
Eugene Oregon's Best Home Search Website

Stewart - You are expecting way too much from these people.  They are only being so generous because we loaned them all that money they didn't need.

Sep 22, 2009 08:20 PM
Karen Fiddler, Broker/Owner
Karen Parsons-Fiddler, Broker 949-510-2395 - Mission Viejo, CA
Orange County & Lake Arrowhead, CA (949)510-2395

They are terrible....they took 67 days to close a normal loan (normal....20% down) and it ended up costing my buyers $1100 in per diem fees and an extra $2000 to the short sale lender. They are a joke. I tell all my buyers to go to a mortgage broker. I'm waiting over a week right now for a Chase underwriter to give us docs. Direct lenders are terrible right now.

Sep 23, 2009 02:17 AM
COMPASS PALM SPRINGS | Stewart Penn
COMPASS - Palm Springs, CA
COMPASS Palm Springs - Broker Associate

Karen - Was the loan you referring to made by Wells Fargo?

And if so, did they honor their Closing Guarantee?

Sep 23, 2009 03:13 AM
Ralph Gorgoglione
Metro Life Homes - Palm Springs, CA
California and Hawaii Real Estate (310) 497-9407

I can tell you first hand it is a gimmick.

I had a listing a few months back that we received 2 offers on.

They were very close, but we decided to accept the offer from the buyers with the Wells Fargo pre-approval for that very reason.

Well, not only did it not close on time, but the Wells Fargo loan officer avoided my phone calls and emails when I told her that the loan wasn't going to close on time.

After I finally making very loud squeaks, she blamed it on FHA and how it takes longer.

That was a load of B.S. because she had more than 30 days to close, and I actually expedited the entire process to make sure she had everything she needed ahead of time.

When I reminded her that we chose her buyer's offer because of the Wells Fargo "guarantee", she begain ignoring my emails and phone calls once again.

Sep 23, 2009 04:24 AM
COMPASS PALM SPRINGS | Stewart Penn
COMPASS - Palm Springs, CA
COMPASS Palm Springs - Broker Associate

Ralph - I've been emailing the Wells Fargo Loan Specialist and his Manager asking if they will honor the guarantee, but they ignore my inquiries.

Sounds familiar to your experience ....

Sep 23, 2009 09:04 AM
Debbie Rumsey
HomeSmart Realty West, Carlsbad, CA - Encinitas, CA
Realtor, Green, SFR

Wow, sounds like we should all be contacting the CEO's of this company.  Wouldn't you call that "false advertising"?!  Oh yeah, the CEO is probably on his private jet on his way to Tahiti thanks to your tax money.  Makes you just scratch your head and say, "huh?"

Sep 24, 2009 04:44 AM
Darla Maddalone
Bend Oregon Homes Online-Principal Broker, SFR, CSP - Bend, OR

You got my curiosity going...so I went to the Wells Fargo site.  Here is a link to their "The Wells Fargo Closing Guarantee Terms and Conditions"  https://www.wellsfargo.com/com/corporateprograms/terms

If you meet all their "requirements" , just keep climbing the management ladder until they make good on their guarantee.

 

Sep 24, 2009 04:47 AM
Douglas Fischer
East Oahu Realty - Selling Honolulu, Hawaii Condos - Honolulu, HI

I have a good friend who works for Wells Fargo Home Mortgage here in Honolulu, Hawaii.  He said he has never heard of such a policy!  Plus, with the new HERA guideliness, closing on time is even more of a challenge.

Sep 24, 2009 07:48 AM
France and Mark Clausen
Realty Austin - Dripping Springs, TX

I have a nice bridge for sale in Brooklyn

Sep 24, 2009 10:43 AM
Lisa Matykiewicz
United Brokers Group - Gilbert, AZ

Sounds like a gimmick....I have not seen this advertising.

Sep 24, 2009 12:21 PM
Brian Madigan
RE/MAX West Realty Inc., Brokerage (Toronto) - Toronto, ON
LL.B., Broker

They don't really do much business in Ontario, so I can't say that I have any measurable experience with them.

But, good luck.

Hopefully, they will honour the guarantee.

 

Sep 24, 2009 12:28 PM
Robert Schwabe
Herron Real Estate - Orange Park, FL
Orange Park Real Estate

Stewart - That's a mighty bold statement. I had one that came down to the wire on getting the loand closed.

Sep 24, 2009 02:40 PM
Terry Chenier
Homelife Glenayre Realty - Mission, BC

Stewart,

Like everything else, the proof is in the pudding. Keep us posted on this one.

Sep 24, 2009 05:04 PM
COMPASS PALM SPRINGS | Stewart Penn
COMPASS - Palm Springs, CA
COMPASS Palm Springs - Broker Associate

Wells Fargo has categorically refused to pay on their Closing Guarantee.

They claim the client didn't request it at the time of his loan application.

ENOUGH IS ENOUGH - THE BANKS CANNOT BE ALLOWED TO CONTINUE TO LIE TO THE PUBLIC.

Sep 25, 2009 02:30 AM
Anonymous
Payman Sattari

Its real but how often they give it out is totally skewed by their marketing.  If you review the terms & conditions of the program you'll get the real scoop.  First off it doesn't apply to FHA or reverse mortgages.  Terms & Conditions state:

"FHA regulations require a minimum cash investment from a borrower, Rural Development prohibits cash payments directly to a borrower and reverse mortgage loans do not require a monthly payment by a borrower. Therefore, if we miss the initial closing date as indicated in your original purchase contract for an FHA or Rural Development loan product, we'll make a onetime donation equivalent to your first month's mortgage payment to a faith-based or non-profit organization of your choice. If we miss the initial closing date for a reverse mortgage transaction, we'll make a one-time, $500 donation to a faith-based or non-profit organization of your choice."

Moreover, there are a number of ways in which they can find a loophole to invalidate your eligiblity.  It also states:

This guarantee is not valid if:

  • You change loan products or terms.
  • Applicable law or investor requirements impose a required waiting period prior to closing, including but not limited to a waiting period due to redisclosure to you of updated loan, or Truth in Lending Disclosure information, or delivery of an appraisal or appraisal addenda, and that waiting period prohibits us from closing on your set closing date.
  • You do not specify a closing date in the original purchase contract (except contracts for new construction as outlined below).
  • You shorten the closing date from the date that was in the original purchase contract
  • Missing the closing date is due to your actions, omissions or delays, or is due to those of an unaffiliated, third party.
  • Missing the closing date is due to inclement weather, a natural disaster, catastrophic event, or other major event beyond our control.
  • Your application or loan documentation contains fraudulent information or material misrepresentations.

Basically a list of things where they could guarantee at least one will happen 90% of the time.  Gimmick, no.  False advertising, not really.  Completely misleading and intelligently worded for Wells Fargo's benefit and not yours, definitely.

Oct 29, 2009 09:55 AM
#20
Johanna Roy
BRIX Real Estate - Saint Paul, MN
The Name Friends Recommend

I just asked one of my Wells Fargo lenders about their gurantee since all my buyers have been delayed this year using Wells Fargo this is what she stated about my last buyer - 

"He will get the closing cost guarantee $$, but FHA does not allow us to give money to client so we will make a donation to a non-profit organization on his behalf.  I have the information to present to him.  The checks are usually processed about 30 days after closing.

I had this paid out on another loan, we ABSOLUTELY pay it out when we miss the date.  Maybe the hit to the pocket book from this guarantee will shake someone up!"

May 26, 2010 07:30 AM
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

False Advertising of any kind is a hot topic for me right now.  It's incredible and appalling how some agents that are clueless when it comes to Short Sales boast of hundreds of transactions and high closing ratios - neither metric being supported by the MLS.

Aug 23, 2010 01:55 AM