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Wells Fargo got the Case, Mortgage brokers are to be blame

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.

Other Articles to Read:

Bank of America’s Cooperative Short Sale Program

Banks Are Calling Homeowners To Solicit Short Sales

Options To Prevent Gainesville Foreclosure when Unemployed

Do I Have to Pay for the Real Estate Agents Commission?

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.


Contact Stephanie Anson, CLHMS, CDPE, SFR, Realtor®, Anson Properties LLC. Licensed Realtors® in Florida at 352-260-0153 to list your property for sale or to purchase a property in Gainesville, Archer, Alachua, High Springs, Waldo, Keystone Heights, Hawthorne, Melrose, Cross Creek, LaCrosse, Williston, Earlton, Ocala, Micanopy, Newberry, Kanapaha, Haile Plantation, Duck Pond and the rest of Alachua County Florida, Orange County Florida and Seminole County Florida. We are accepting referrals. Gainesville Short Sale Agents

  

Gainesville Short Sale Owners filed against Leading Lenders

Gainesville Short Sale Owners filed against Leading Lenders Last year, several lenders vowed to work together with the underwater homeowners to avoid deceitful practices as mentioned in the national legal settlement. However, just recently, there are numerous homeowners in Florida who reported complaints versus the leading lenders.

A deal was made by several states and federal leaders last February which was believed to compel America’s top five lenders to minimize their interest rates, trim down principal or propose cash to those mortgage clients that are struggling.
What has surfaced recently are largest lenders’ clients are greatly disappointed. The percentages of those complaints are in immense numbers; this record was provided by the Florida Attorney General’s Office to the Orlando Sentinel.

Bank of America 39%
Wells Fargo 28%
JPMorgan Chase 28%
Citi 9%
Ally/GMAC 4%

One of the complainants is a condominium owner in the business district of Orlando who opposes to the decision of the legal settlement in which “underwater” mortgage customer who has a property that is now cheaper than the loan will not be able to work with a bank unless the lender is not just a mortgage servicer but as well as own it.

This complainant mentioned that Florida Attorney General and several state attorneys have let the banks reserve a little amount of money to satisfy the needs of the customers who have been deliberately paying on their underwater mortgages. In Florida alone, there is a huge $8.4 billion shared to the state under the settlement but lenders are entailed to use only 4 percent to aid some homeowners in settling their mortgages.

The number of underwater homeowners is very high that the banks cannot refinance all of them. In Orlando city alone, there 250,000 houses are currently worth much less than their mortgages reported by a real-estate research group, CoreLogic Inc. The Florida Attorney General is now facing 1,000 complaints by Floridians against five lenders who processed unlawful mortgage documents.

Upon the announcement of the settlement, the Florida Attorney General Pam Bondi mentioned that the settlement will serve as an aid to struggling homeowners in Florida. The same with the U.S Department of Justice Officials, they said that the result of the settlement will help homeowners all over the country because the mortgage principal is minimized and the loans will be refinanced.
Florida prepared a committee to look closely to the mortgage servicers to see to it that they will comply with the agreement.
Bondi’s Office promised to help ensure that the lenders are complying with the settlement, and they expect to set aside large sums of money to cover the cost if follow-up will be needed as well as investigations.

Some critics said that the problem is not with the compliance of the lenders. The problem is the settlement because it do so little to relieve the homeowners.

Other Articles to Read:

736K self-insured Florida residents to get rebate

30-year FRM hits record low at 3.66%

Gainesville Short Sale Agents Rent To Buy Scheme

Gainesville Short Sales – Why Don’t I Just Let the Bank Foreclose?

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.


Contact Stephanie Anson, CLHMS, CDPE, SFR, Realtor®, Anson Properties LLC. Licensed Realtors® in Florida at 352-260-0153 to list your property for sale or to purchase a property in Gainesville, Archer, Alachua, High Springs, Waldo, Keystone Heights, Hawthorne, Melrose, Cross Creek, LaCrosse, Williston, Earlton, Ocala, Micanopy, Newberry, Kanapaha, Haile Plantation, Duck Pond and the rest of Alachua County Florida, Orange County Florida and Seminole County Florida. We are accepting referrals. Gainesville Short Sale Agents