WSJ: Jumbo Rates Fall Below Conventional Mortgages

Rates for higher loan amounts have dropped below conventional loans, according to the Wall Street Journal. Jumbo mortgages, which are too big for government backing have historically been set higher, but this has changed for the first time, according to some executives. This comes as a result of interest rate volatility, government policy and banks flush […]

Wells Fargo to Cut 2,300 Mortgage Jobs

Wells Fargo plans to eliminate 2,300 mortgage jobs as rising interest rates look to impact refinancing activity, reports Bloomberg News.  As higher interest rates make refinancing “less attractive,” according to individuals with knowledge of the matter cited by Bloomberg, Wells Fargo expects mortgage lending will slow for the remainder of the year.  The job reductions […]

U.S. Sues Wells Fargo For Fraud, Lying About Thousands of FHA Loans

The U.S. Government has filed a civil suit against Wells Fargo for reckless underwriting and fraudulent loan certification for thousands of Federal Housing Administration-insured loans under FHA’s Direct Endorsement program. The loans in question ultimately defaulted, resulting in hundreds of millions of dollars in insurance claims paid by FHA, the suit alleges. The loans in […]

The Biggest Impact of Losing MetLife and Wells Fargo? Liquidity

Exits by major financial institutions like MetLife, Wells Fargo, and Bank of America have been hard on the reverse mortgage industry from a public perception perspective, but the loss of liquidity as a result of those exits could also present other issues. Without these “mega banks” participating in the program, there is limited capacity for […]

SF Chronicle: Wells Fargo Mortgage Growth Raises Red Flags

Compared with just 10% of the mortgage market in 2004, Wells Fargo now makes roughly one out of every three new mortgages, writes a report in the San Francisco Chronicle. And the growth in market share, the article says, is raising some red flags.    The concentration in a single market is one thing, but […]

LOs Respond to Wells Fargo: Not All Brokers Are Bad

In its decision last week to exit the wholesale market for mortgages, Wells Fargo essentially slighted mortgage brokers whom the company had previously partnered with and those who had sold loans to the lending giant.  The company said it could not sufficiently control the loan origination process through its broker channel and cited those loans […]

With Reverse Exit, Wells Fargo Drives Mortgage Industry Job Losses

The effects of an uncertain housing market on mortgage employment are not yet fully known for 2012, but according to an industry job index, the second quarter saw a net loss, with hopes of hiring ahead. Some companies fared better than others. The quarterly Mortgage Employment Index tracked by MortgageDaily.com reported today that in spite […]

Is There a Silver Lining in the Big Bank Reverse Mortgage Exits?

Many in the industry have lamented the loss of Wells Fargo and Bank of America from an educational and brand awareness standpoint, but the exits are driving new referral business to lenders who remain. Reports have shown larger lenders saw a boost in volume following the exits, it also appears that some much smaller originators are […]

DOJ Starts Probe on Wells Fargo for Allegedly Preying on Borrowers

Wells Fargo may have gotten out of reverse mortgages, but it’s getting into trouble with the Department of Justice, the Huffington Post reports. The DOJ has started a probe into Wells Fargo’s lending practices and is preparing a case against the lender for allegedly preying on African-American borrowers during the housing bubble and inappropriately directing them […]