The largest mortgage lender in the U.S. has applied the new standard to the county for loans higher than $601,450 after categorizing the area as distressed, according to Bloomberg. It takes effect for loans made after Sept. 15, and Wells Fargo did not elaborate on why they changed the standard.
Home sales in Fairfield County dropped by 0.7 percent in the third quarter, but the median price jumped 3.7 percent to $425,000, and contracts jumped 28 percent. These were favorable numbers compared to other suburbs in New York.
Miller Samuel president Jonathan Miller told Bloomberg the only reason he could think of for applying different standards to Fairfield would be issues at the state government.
“There’s no rhyme or reason for underwriting standards to be different in Fairfield,” he said. “The only thing I can think of is they’re worried about what’s happening in Hartford more than what’s happening at the specific property level.”