Tuesday, December 05, 2006

Wells Fargo Hopes to Cash in on Risky Borrowers

REALTOR Magazine Online
Wells Fargo Hopes to Cash in on Risky Borrowers
Daily Real Estate News December 5, 2006
Source: Los Angeles Times, E. Scott Reckard

Here is another greal little article from the REALTOR Magazine Online, that I receive daily. In this article, Wells Fargo announces a new program that will help educate high risk borrowers, known as "Sub-Prime" in the industry. This can be very good for the Hemet Real Estate market if more borrowers are aware of what they are getting themselves into and how to manage theier affairs, once they have bought a new Hemet home.
- John Occhi, Hemet Realtor

Despite the trend toward rising delinquencies, Wells Fargo & Co. is increasing its lending to risky borrowers in the hopes of making money on additional services like checking accounts and credit cards.

In a strategy it plans to announce today, the banking giant says it will automatically enroll these borrowers in a financial education program that will include free consultations in English or Spanish with specialists who can help them create financial plans and try to clean up their credit. This program will encourage auto-pay, which requires having a checking account.

The program, dubbed Steps to Success, will help address advocacy groups' previous allegations of predatory lending at Wells' sub-prime lending subsidiary, Wells Fargo Financial.

It's the most comprehensive program of its type ever offered to borrowers in the sub-prime market, says Stephanie Christie, a senior vice president at Wells Fargo Home Mortgage.


Anonymous Anonymous said...

Thanks, John.

Sub-prime lending, like any other type of Real Estate service, has its place. For some it can be a very helpful ladder to homeownership and good credit. For others its a trap that leads to foreclosure. What makes the difference? Working with a local lender that has your best interests in mind.

8:15 PM  

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