Wells Fargo – San Diego “Severely Distressed”

[Bubblesitter]

Saw this on Calculated Risk Finance blog today….

Here’s the quote….
“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 …”

Here’s the links on Calculated Risk, Blown mortgage and yahoo finance with details.

http://calculatedrisk.blogspot.com/

http://blownmortgage.com/2008/02/27/wells-fargo-names-most-of-california-severely-distressed/

http://biz.yahoo.com/bizj/080228/1597695.html?.v=1

[Anonymous]

Sounds like sound lending practice to me. If this becomes the norm, stick a fork in CA housing.

[Anonymous]

Sounds like sound lending practice to me. If this becomes the norm, stick a fork in CA housing.

[Anonymous]

Sounds like sound lending practice to me. If this becomes the norm, stick a fork in CA housing.

[Anonymous]

Sounds like sound lending practice to me. If this becomes the norm, stick a fork in CA housing.

[Anonymous]

Sounds like sound lending practice to me. If this becomes the norm, stick a fork in CA housing.

[Author]

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