Wells Fargo pushing to keep loans in-house under new rules

TRD NEW YORK /
Jan.January 08, 2014 10:20 AM
 

In an effort to boost lending, Wells Fargo, the nation’s largest mortgage lender, has assigned roughly 400 underwriters to originate mortgages that the bank will hold in-house. Up to 40 percent of these mortgages will fall outside tighter government lending guidelines that kick in this week.

The move will allow the bank to boost business while maintaining the quality of loans, according to Wells Fargo’s head of portfolio lending Brad Blackwell. Some of these loans have terms which prevent them for qualifying protection from the Consumer Financial Protection Bureau, Blackwell said.

Wells Fargo is looking to grab clients looking for unconventional loans – such as those with interest-only payments, according to Bloomberg News.

“As rates continue to rise and refinancing volume continues to contract, lenders are going to be looking for a way to keep their staffs busy,” Erin Lantz, director of mortgages for Zillow.com, told Bloomberg News.

The bureau’s new rules – part of the Dodd-Frank financial reform — come into effect January 10, and state that borrowers can’t have a debt-to-income ratio above 43 percent. The new requirement would make it harder for individuals such as entrepreneurs – whose incomes vary widely year-over-year – to qualify for a mortgage. [Bloomberg News]  – Hiten Samtani


Related Articles

arrow_forward_ios
New York Life building gets $410M refi

New York Life building gets $410M refi

Related chairman Stephen Ross with 30 Hudson Yards, 1633 Broadway and 55 Hudson Yards (Credit: Getty Images, Paramount, Wikipedia)

Here were NYC’s largest real estate finance deals of 2019

55 Hudson Yards, Facebook CEO Mark Zuckerberg (Credit: Google Maps and Getty Images)

Here’s how much Facebook is paying at Hudson Yards

Clockwise from left: 10 Jay Street, Rochdale Village and 46-06 57th Avenue (Credit: Google Maps)

These were the top 10 outer borough loans last month

From left: Brookfield's Ric Clark, 3333 Broadway and L+M's Ron Moelis (Credit: Brookfield, L+M, StreetEasy)

L+M, Invesco close on Putnam portfolio with $823M in Wells Fargo financing

Jackson Park at 28-40 Jackson Avenue and Tishman Speyer's Rob Speyer (Credit: StreetEasy and Tishman Speyer)

Tishman Speyer locks in $1B in financing for Jackson Park

Wells Fargo, JPMorgan Chase and Citigroup each recorded a rise in second quarter profits in their consumer divisions (Credit: iStock)

Banks see uptick in mortgages, but remain wary ahead of potential Fed interest rate cut

Edward Minskoff and his 1166 Avenue of the Americas (Credit: Getty Images and Wikipedia)

Wells Fargo lends $245M for Minskoff tower

arrow_forward_ios
Loading...