Wells Fargo Considering Eliminating Stated Income

Published: November 13, 2007, 3:47 pm

Tags: mortgage news insight, home equity loans, sisa, siva, stated income, wells fargo

In an email communication from my wholesale representative it appears that Wells Fargo is eliminating stated income immediately on its home equity programs and is seriously considering eliminating “borrower selected” stated income from its product mix. It appears that stated income may be still available based on risk grading via the automated underwriting engine; but otherwise will not be an option to borrowers. The email also mentions that non-conforming ARM loans are not performing well and that pricing should worsen signficantly on those products in the near future. While I know some of you don’t care what Wells Fargo does (Russ) I think it’s important to track the evolution of the major banks and their lending criteria as veritable ‘canaries in the coal mine.’ What they do will inevitably where the bulk of the market will head. Read it for yourself here: The decision has been made to stop originating borrower selected SIVA [for equity

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