August 2nd, 2012 10:57 AM by Eric Fang
A lot of borrowers asked me the question, and theythink I should know evreything. Just kidding.
My processor is back from her one month vacation.That means I can accept a little bit more refinanceloans and I can write more blogs.
Anyway, back to Wells Fargo topic. The first problemis the Joint Ventures wells Frago with the Builders.Usually you will see the WF loan agent next to theoffice of the sales office of the builders. So thebuilder will "advise" you talk to Wells Fargo loanagent. But it is not exactly Hud required that "the borrowers can independently choose their own loanagent". Second, WF was fined for around 300 Millionfor their subprime loans they originated during theprime times. And they blamed it to those "loan agents".Third, the wholesale loans was only 5% of the loansthey originated. So they don't lose much market shareif they exit the market.
And the last reason was that they already had enough market share and they don't want any more.
And another interesting data from the above reasons,why their wholesale loans only 5%? Becuase their rateis higher than most other wholesale lenders, andloan agents do not send the loans to them.
I will share more industry news with you guys if morepeople are interested.