I just got this information from fellow mortgage blogger , Morgan Brown over at BlownMortgage.com
Wells Fargo has named nearly every California county a “Severely Distressed Market” which requires LTV reductions of 5% for any conforming loan over 75% LTV and also eliminates financing over 75% LTV for any non-conforming loan. The Wells Fargo Mortgage Express product (which is Wells Fargo’s stated income/stated asset program) is also not permitted in “Severely Distressed Market” areas.
Look for the rest of the market leaders to quickly follow suit. This immediately puts a huge swath of the state with increasingly limited refinance options. A huge portion of California loans are of the non-conforming variety and well over the 75% LTV mark (especially factoring in the major price drops over the last 16 months). This does not bode well for the folks in the Golden State.
Here’s a link to the entire PDF of the Wells Fargo product changes and below I’ve posted a list of the California counties listed in the changes.
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This doesn’t look too good for the home team. Great info Moe, you’ve been mighty busy lately. Really like the new format.
Posted on February 27th, 2008 at 4:13 pm
The funny part is Wells still hasn’t marked down most of its portfolio, 30% of which is in California.
So, the loans are junk where it suits them to cover their behinds and limit their exposure, but the loans are fine when it comes to avoiding write-downs and making earnings look good.
Posted on February 29th, 2008 at 6:31 pm
I agree Aaron. But sooner or later, they to will have to face the piper and Peter isn’t picking a peck of pickled peppers because Peter Piper picked a pack of “toxic pickled peppers” for which Peter isn’t piping anymore.
In fact, Peter is dead on the floor…………………
Posted on March 1st, 2008 at 2:48 pm
Moe,
I have been Mortgage Banking for 26 years and lost my job with Ownit Mortgage almost 15 months ago.I have enjoyed and followed ImplodeOMeter over the last year. Thought you may be interested in a “Blog” on Countrywide for your research.
Google “EX cwinsider” this will give you up to date comments from “Former and Current Countrywide Employees”. I had a lapse of my sanity I worked for 6 months at Full Spectrum about 4 years ago and the Managers strong arm and good old fashioned loan shark treatment of Sub Prime borrowers made me sick. I am so glad he and his entire branch went down. I can’t help but wonder if he is now behind with his mortgage payments on his 3 million dollar beach house he had custom bulit while I was in his branch. Best of luck I will look for the ABC special.
Posted on March 3rd, 2008 at 9:51 am
Thanks for taking the time to comment Lisa. There are a lot of good mortgage professionals like you out there that are suffering. Many of the very same lenders you all were committed to, have turned their backs on you all. In fact they are throwing you under the bus. It needs to stop.
I wish you the best of luck!
Posted on March 3rd, 2008 at 12:23 pm
How much are they paying for whistleblowing that will cost someone their job? The person I know is thinking about a book deal.
Posted on March 15th, 2008 at 6:54 am
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