Wells Fargo loan stance toughens
From Times Wire Services
Wells Fargo & Co. is seeking to limit its exposure to mortgages that typically don’t require borrowers to fully document their incomes.
The bank told mortgage brokers Tuesday that it was making “day-to-day decisions” whether to acquire from them so-called alt-A mortgages. Wells Fargo cited a growing reluctance of investors to buy such loans from the bank.
Because they aren’t subject to the usual income verification process, some alt-A borrowers are believed to have grossly exaggerated their pay.
Last week, Wells Fargo stopped acquiring sub-prime loans from brokers.
