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Wells Fargo / loan denial for no reason!!

1 CA, United States Review updated:

We submited information for a loan with our loan broker on Jan. 23-09 (today is March-17-09). trying to get in on the very low interest rates a few months ago. Mind you... we have no debt, no bad pay. Appriasal came in very low but was not a big deal since we have so much equity and was not taking much out at all.

I just received a call from our broker stating Wells Fargo denied our loan!! They said since we were the only house on the block they could not find comps!! Let me just say down the street from us they are selling crappy little condo (in an alley) for the high 500's. We were appraised with large lot (with enough room to build same size condo complex down the street) 2 houses for 350 (very low for our area) Wells Fargo lowered to 310!! We were asking for a 200K loan!!! With money in the bank, no bad debt etc., etc., etc.
I thought we gave Wells and other bank our tax dollars so they can help get the economy going again by lending!!! Our laon is a no brainer and they held it up for months and denied it! Does that sound like a bank that is handling the bailout the way it was meant????

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  • Ma
      21st of Mar, 2009
    0 Votes

    I had a similar experience about the same time with Wells Fargo. My home was at 85/20 debt to equity ratio as opposed to 80/20. Took them forever to tell me I was rejected. I called again since the Homeowner Affordability Act provides for refinancing of loans held by Freddie Mac if the home loan to equity ratio is a little bit outside of thr 80/20 ratio without having to pay PMI . Wells Fargo told me that they didn't think I qualified because I was not in danger of forclosure. I reminded them that the program consisted of two parts and it was the refinancing part that I wanted to apply for. I had verified that my mortgage was owned by Freddie Mac, my credit score is above 800, and I had no problems with income level, plus no debt other than mortgage, it was my primary residence. They wanted to push me into a traditional refinancing deal rather than honor the President's program. DON'T LET THESE COMPANIES PUSH YOU INTO A TRADITIONAL REFINANCING DEAL that will require PMI payment when you didn't pay PMI on your original loan. Freddie Mac requires that the refinancing for the program only be conducted by your current company, so if you have a Freddie Mac morgage, your out of luck unless you can get your company to move on the deal. Wish Fannie Mae owned my mortgage, they'll allow you to shop around and still get the benefits of the President's program. WELLS FARGO NEEDS TO GET ITS ACT TOGETHER, if it's not prepared to implement the second half of the President's program, just say so, don't refer me to a traditional refinancing where any benefit would be wiped out by the PMI requirement!

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