Wells Fargo got the Case, Mortgage brokers are to be blame.Just last July, Wells Fargo & Co. was accused of biased lending. The said company paid $175 million just to resolve the issue. What’s worse is that it puts the blame to independent loan brokers for selling their mortgages, and this in turn closed the opportunity for extensive mortgage operation.
For these mortgage brokers, whose making an income by mediating between borrowers and lenders, this resulted in a negative flow of revenues. It also ended their work with the large banks, making Wells Fargo, one of America’s major wholesalers, as their last.
The housing downturns have left several mortgage brokers to conclude wholesale lending, and the current experience is just a major setback. It changes how they operates that these brokers feel they are being blindsided.
Way back year 2008, brokers handled about 27 percent of the amount of total mortgage but today, it lessened to 10 percent
Recent years, the quantity of people who assist home loan has dramatically gone down. This would drop extensively since Wells Fargo is out of the loop. Wells Fargo have helped many broker-related situations, funded a total of $7.4 billion in the first quarter of 2012.
Gainesville Realtors® are left with no choice but to turn to minor lenders who might be stress out to handle what Wells Fargo put behind. There are homebuyers who prefer brokers to deal straight to the banks because brokers can give mortgage proposals that are priced less than retail lenders. However, the amount of Gainesville Realtors® has shrunk in the past years, and they have been blamed for several mortgage disasters.
Tom Goyda, spokesman of Wells Fargo, said that by removing the system they are committed to fair and responsible lending.
There are federal regulators who blamed Wells Fargo for charging African-American and Hispanic borrowers with higher rates than those qualified Caucasian borrowers.
What mostly concern brokers Gainesville Realtors® are the processing time of the loan, it might be slower. They are also worried that Wells Fargo might end or regulate their connections to correspondent lenders because numerous major banks have already chosen to do so.
Wells Fargo still does business with correspondent lenders because these lenders grant and fund loans in their own label before trading a mortgage to a lender. Wells Fargo is so far backed up with the amount of incoming leads that they have failed to process loans in time. I had one loan that took over 90 days. I flipped the buyer to another lender but I wanted to see how bad the service from Wells Fargo was going to be so I left the file open with them. It took over 90 days without resolution; they lost my business needless to say.
I received excuses that they were overloaded, backed up, etc. Guess what guys, people need jobs, how about you hire. This is not just a local Gainesville Florida problem. I had the same issues with Wells Fargo in the Orlando area.
Wells Fargo and these correspondent lenders have mutual interests where brokers can still propose mortgages to clients. If the bank were to discontinue this relationship, it could produce problems for many clients.
Other lenders are already reluctant to work with Wells Fargo because a possible litigation might ensue. These might cause regulators to pursue other lenders for their transactions.
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Call Stephanie Anson today at 352-260-0153 for a confidential phone interview regarding your options.
Please seek legal advice. This information is for informational purposes only.
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