I know, I know....there are already 10-15 other blog posts titled "WELLS IS GONE" or "WELLS FARGO EXITS WHOLESALE"...so I am not really doing anything new here.
But what the heck does this mean if you are a Loan Officer? or Realtor? or Appraiser? Or better yet, Borrower??
Loan Officers- It really only effects Brokers, but really they gave a lot of time to fund out your current pipeline. The only really thing that sucks is that last Friday 07/13 was the last day to submit new loans. Now the only real difference is you will have to submit loans to a Lender that sells to Wells, that's all. But if they have overlays its not going to be fun. There are still a ton of lenders that sell to Wells through the correspondent channels. Its when they pull the plug on correspondent that things will get wierd. At this point there are many different lenders, and if you need suggestions just email me. Brokers will be fine.
Realtors- Well, it doesn't really effect you guys much unless your client specifically wants to work with Wells Fargo. Reason being is because ANYTIME there is change in our industry, its not fun or smooth at all. Wells Retail, any retail for that matter, is notorious for taking longer than wholesale when it comes to funding loans. Now Wells does have a 30 day guarantee on purchases, but refinances are about 65-90 days from what I am hearing and seeing with my own eyes. I would expect lengthier turn times on retail side during the transition. Remember a ton of new employees are coming over from wholesale, I heard Wells did the RIGHT thing by not clipping all wholesale underwriters and other employees, but rather are transferring the to retail to help out.
Appraisers- Don't really know how this is going to effect you guys. I heard that Wells retail does not use Rels Direct which is what we used on the Wholesale side to order appraisals (Their AMC). If it is different that means you may have to spend to getting setup on retails system..?? I don't know, so I wont comment...but do your homework so your orders don't stop.
Borrowers- So your buying a home and you want to be guaranteed that your loan will be through Wells Fargo. Well I guess you will have to go directly to retail. Well I hope you enjoy waiting in line, dealing with someone a Loan Officer who only has a NMLS id # but never had to take continuing education courses or a State & Federal exam, because guess what they work for an FDIC! On top of that, the pricing is going to probably get even more padded, and if the stuff hits the fan for Wells, how the heck is the government going to perform that bailout.
Now I am not saying they are all bad and crooks and it sucks to get a loan there...But what I am saying is I think this is a sign of times to come. Maybe everyone's right, Brokers might be gone in 5 years...but I'll tell you what, that's what they told us 5 years ago and anyone that is still around is not only surviving but thriving!
I'll leave you with this, Wells Fargo currently owns 3 out of 4 loans in America.