Wells Fargo Pulls The Rug On New FHA Streamline Refinance Mortgages

By
Real Estate Mortgage Broker with George Souto NMLS #65149 FHA, CHFA, VA Mortgages Connecticut NMLS #65149

The new FHA Guidelines for Streamline Refinancing FHA Insured Mortgages, which had endorsed FHA Case Numbers prior to June 1, 2009, had no sooner gone into affect last week than Well Fargo pulled the pug on accepting applications for them unless they were already servicing the loan.  This came as a major blow especially to brokers, wholesalers, and correspondent lenders.

Luckily for us at McCue Mortgage it did not have much impact on us, because we have other investors that are more than happy to service new FHA Streamline Refinance Mortgages.  Never the less this was a pretty cheap shot by Wells Fargo, and I am sure it will be one that will at some point come back to bit them in the donkey.

These past two week have be among some of the highest volume weeks that we have had since I have been with McCue Mortgage.  We have seem more than double the volume of what would be considered a very good week, and it is all attributed to the new FHA Streamline Refinance Guidelines.

Anyone who has an FHA Insured Mortgage that has a Case Number that received endorsement prior to June 1, 2009 should seriously consider refinancing.  FHA interest rates prior to June 1, 2009 were at least 5.25% and higher, so each of these loan can see a monthly savings of $130 plus dollars per about $100,000.  That is serious savings for most of the homeowners that can qualify for this program.

It was reported that so far more than 126,000 homeowners have than advantage of the new FHA Streamline Refinance Guidelines, and there are thousands more that will be taking advantage of these new guideline in the coming weeks.  If you have a FHA Insured Mortgage that received endorsement prior to June 1, 2009, act now before FHA pulls a cheap stunt like Wells Fargo, and pulls the rug out from under you, by changing the  rules again.  Don't be one of the ones that will later say, I should have done it but didn't.

 

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 Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 orgsouto@mccuemortgage.com

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Topic:
Mortgage / Finance
Location:
Connecticut
Groups:
Real Estate Rookie
Realtors®
Mortgages
The FHA Mortgage Group
Tags:
fha streamline refinance

Comments 27 New Comment

Rainer
185,563
Beth Paterson
NMLS #342859
Reverse Mortgages SIDAC, NMLS #173899

George, I'm thinking Wells may just be too big but at some point I think it will catch up with them.  Good thing you have other lenders/investors to help your clients... the advantage of being a broker and having more than one option of lenders.

 

June 23, 2012 01:01 PM
Rainmaker
971,166
Sharon Alters
Your Fleming Island Relocation Agents.
Coldwell Banker Vanguard Realty

George, thanks for keeping all of us current. I guess they weren't making enough money on these loans???

Sharon

June 23, 2012 05:41 PM
Ambassador
2,270,915
Patricia Kennedy
For Your Home in the Capital
Evers & Company Real Estate, Inc.

George, this post illustrates why I send my clients to, well, not the big banks.

June 23, 2012 06:25 PM
Rainmaker
998,531
Joan Whitebook
Consumer Focused Real Estate Services
BHG The Masiello Group

-George -- what great news for McCue.. Glad that you are able to continue to work with those who want to take advantage of the FHA 203K program!  "These past two week have be among some of the highest volume weeks that we have had since I have been with McCue Mortgage.  We have seem more than double the volume of what would be considered a very good week, and it is all attributed to the new FHA Streamline Refinance Guidelines."

June 23, 2012 06:31 PM
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1,518,582
Christine Donovan
Broker/Attorney 800-610-7253 DRE01267479 - Costa M
Donovan Blatt Realty
George - This is a change midstream for Wells Fargo. It's a good thing there are other options.
June 23, 2012 08:23 PM
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George Souto

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