Wells Fargo Tightens Home Loan Policies

Submitted by Ronald Tennant with Metrocities Mortgage:

Los Angeles Times (05/23/08)
In response to rising defaults and changes in mortgage insurers' requirements and pricing, Wells Fargo & Co. is requiring higher credit scores on mortgages for 95 percent or more of the property value. Additionally, it will no longer permit cash-out refinancings for loans for 80 percent or more of the home value. In order to take advantage of current pricing, Wells Fargo says loans must be locked in by the evening of May 23 and close by June 30. Despite an 11-percent decline in net income in the first quarter, Wells Fargo still posted a profit.