Wells Fargo Home Equity is planning on moving the Orange County and Los Angeles, California home markets from "soft" to "distressed" in its underwriting guidelines for home equity loans. This move restricts underwriting guidelines by an additional 5% in terms of loan to value guidelines for home equity loans. While the change hasn't been made yet; it has been deemed imminent by internal folks close to the situation. This would cap all second mortgage liens at 85% combined loan to value in those counties. Stable and soft market LTV maximums are at 90%.
This comes on the heels of the recent Goldman Sachs report that stated that California home values could be overpriced by as much as 35-45%. We'll have more on that report later.
Share This
Related Headlines
- Wells Fargo Names Most of California Severely Distressedposted 28 weeks ago on Blown Mortgage
- Sources: Wells Fargo to Eliminate 100% Financingposted 54 weeks ago on Blown Mortgage
- Wells Fargo Whacks Brokers Again on Jumbo Loansposted 45 weeks ago on Blown Mortgage
- Mortgage Market Minute 2/26/08posted 28 weeks ago on Blown Mortgage
- Don?t think gas prices are a problem? Ask Hummer.posted 13 weeks ago on Blown Mortgage
- Wells: More Liquidity Issues in the Secondary Marketposted 19 weeks ago on Blown Mortgage
- And you thought stated income was bad?posted 23 weeks ago on Blown Mortgage
- Spread the good wordposted 48 weeks ago on Blown Mortgage
- Stimulus Package, New Loan Limits and a Controversial California Lawposted 32 weeks ago on Blown Mortgage