Wells Fargo plans to offer non qualified mortgage loans and hold the loans in their portfolio. That means if you work with Wells Fargo to get a non QM mortgage, you can expect them to hold the loan and you will make your monthly payments to them. At least for now. From MortgageNewsDaily:
With new rules defining Qualified Mortgages (QM) slated to kick in on Friday at least two lenders have indicated they will make room for loans that don’t quite fit the government mandated mold. The two, Wells Fargo and Bank of the West, plan to write at least some of the loans, retaining them for their own portfolios.
Bank of the West, headquartered in Omaha says it will continue to offer interest only loans to its customers even though the loans fall outside the guidelines established by the Consumer Financial Protection Bureau. Paul Wible, Senior Executive Vice President and Head of the bank’s National Finance Group said in a statement this week, “We extensively reviewed the CFPB’s rules and found them broadly consistent with how Bank of the West has always done business. At the same time, we know that interest-only loans can fulfill the mortgage needs of many of our customers. Therefore, even though they do not fit the CFPB’s definition of a QM, we will continue to offer them as before.”
Wells Fargo is big – and they are gearing up a “SWAT Team” of professionals to help people with non QM loans. More from the news update:
On a much larger scale, Wells Fargo, the country’s largest home lender is reported to be readying a group to handle nothing but portfolio loans. Bloomberg says the bank has created “a swat team” of about 400 underwriters who will originate mortgages for the bank to hold. As many as 40 percent of the loans are expected to be outside of new government guidelines.
It is clear that not every lender is ready for a rush of non QM loans, but Wells seems to be on the forefront of the trend where lenders will offer non QM loans as well as get their marketing efforts out to consumers so that they know what is being offered as far as non QM loans.
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