Tag Archive for: Wells Fargo

Recession over? You tell me!

Last year this time, I found myself heaping praise on Wells Fargo for being basically the lone survivor in the Canadian Sub Prime or Alternative mortgage market. Now as of yesterday they are no more, they have thrown in the towel and hitched up their wagon and left town, just like all the others. See the note below. However there is one silver lining to this story, as I believe that we live in a vacuum, as one leaves another arrives. Earlier this week we received an announcement that Toronto Dominion bank has their own alternative lender ( called VFC)  now open for business. So now even if your credit is less than perfect, or you are self employed and can only qualify for a stated income mortgage ( because you make 150K but only claim 25K for example) there are still options available for you. If you have any questions please feel free to contact my office.

Cheers,

Pat

Wells Fargo Financial Corporation Canada discontinues residential real estate lending

Effective July 30th, 2009, Wells Fargo Financial Corporation Canada will no longer be accepting residential mortgage loan applications through its consumer branch and indirect broker network channels.

Please treat this writing as notification of immediate cancellation of any Mortgage Broker Origination Agreement or other real estate lending agreements you may have with Wells Fargo Financial Corporation Canada or Wells Fargo Financial Corporation Canada HomePlan Mortgage.

To the extent Wells Fargo Financial Corporation Canada HomePlan Mortgage has issued a valid fully executed mortgage commitment, provided the applicant or applicants fulfill all of the terms and conditions of the mortgage commitment (including any time specified for closing or expiration of the mortgage commitment), we will honour those commitments.

Current customers and/or brokers with questions about a Wells Fargo Financial mortgage can contact our Corporate Customer Relations team at 1-800-461-8794.

We thank all of our broker partners, vendors and customers for their business and support over the years.

Sincerely,

Rick Valade
President
Wells Fargo Financial Corporation Canada

Wells Fargo Financial Corporation Canada is associated with Wells Fargo & Company, a company that is not regulated in Canada as a financial institution, a bank holding company or an insurance holding company.

Wells Fargo Financial Corporation Canada operates in Quebec as Société financière Wells Fargo Canada.

TM,Trademark Wells Fargo Financial Corporation Canada.
P.O. Box 250, Stn. A, Mississauga, ON L5A 3A1
Ontario Brokerage License Number: 10239

© 2009 Wells Fargo Financial Corporation Canada. All rights reserved.

Citi Financial shuts doors to brokers!

Here is the note that I received from Citi Financial a few hours ago. What this basically means is that there are fewer and fewer choices for consumers and brokers alike. So right now if you have less than perfect credit your options are Wells Fargo or a private lender. Let’s hope that Wells sticks it out.

Cheers,

Pat

November 4, 2008

RE:         Broker Agreement with CitiFinancial Canada, Inc.

CitiFinancial Canada, Inc. has taken the decision to exit its broker referral business.  As such, we are hereby providing you written notice of termination of the aforementioned agreement (the “Agreement”), effective immediately.

Please be advised that we will honour any pending mortgage transactions in respect of which we have provided a signed commitment to your office, provided that we receive any outstanding documentation and are able to close the transaction on or before December 3, 2008.  

We will be in contact with you or your designee to discuss and finalize the following:

(1)     Return and/or destruction of information or materials that are confidential or proprietary to CitiFinancial Canada, Inc., if any is in your possession; and

(2)     Return and/or destruction of information or materials that are confidential or proprietary to Broker, if any is in our possession.

Please note that any provision in the Agreement, which by its sense and context is meant to survive expiration or termination of the Agreement, including, but not limited to, covenants, and all confidentiality and indemnification provisions, shall survive this termination.

We thank you for your consideration herein; it has been a pleasure working with you.

Sincerely,

_______________________

MARY BABICH

Senior Director, Operations

CitiFinancial Canada, Inc.

 

HSBC posts steep profit drop!

The Associated Press

August 4, 2008 at 8:39 AM EDT

LONDON — — HSBC Holdings PLC [HBC-N], Europe’s largest bank by market value, reported Monday its steepest fall in profit since 2001 as costs for bad U.S. mortgage loans mounted.

Net profit for the first half of the year plunged 29 per cent to $7.7-billion (U.S.) from $10.9-billion in profit in the January to June period of last year.

“The first half of 2008 saw the most difficult financial markets for several decades, marked by significant declines in profitability throughout much of our industry,” said HSBC chairman Stephen Green. “HSBC was not immune from the turmoil.”

The biggest losses came from the North American market, which HSBC depends on for a quarter of its revenue. Operations there posted a first-half loss of $2.9-billion, compared with profit of $2.4-billion a year ago.

Part of the blame lies with Illinois-based Household International Inc., a lender HSBC purchased in 2003 that elevated the British bank to the unenviable position of biggest U.S. subprime mortgage lender.

Still, HSBC has weathered the global financial storm with better than some others. In May, the bank reported that first-quarter 2008 profit was actually better than the same period last year, despite a $3.2-billion writedown on subprime mortgage assets in the United States.

If you have read this far you may be wondering why this could be important to you? The answer is quite simple really. The Canadian market is relatively small, we are about 10% of the US population. So if a bank is a having a hard time in the US market, it slowly but surely trickles down to us here in Canada. Here is an example, Accredited Home Lender’s closed their US operations last fall, at that time they left their Canadian operations open as we were still profitable. However come spring time they were forced to close their Canadian operations. This is because banks are having a harder time selling their “ABCP” to investors. If I just lost you there don’t feel bad, ABCP is asset backed commercial paper, or in other words they are selling your mortgage to investors. So because of the instability in the market investors are loosing their appetite for ABCP from sup prime lenders. So what can you do to protect your self? Ask your broker or banker how exposed they are to the US sub prime market. The rest of the players left in the Canadian market are relatively stable, for sub prime Wells Fargo is a good pick as they do not sell their ABCP on the open market, and on the “A” side First National is a good pick as they are Canada’s largest non bank mortgage lender. 

Fee free to contact me if you have any questions or concerns.

Cheers,

Pat

 

 

Batman The Dark Knight Movie

I just got back from seeing the new Batman movie, and I’ve got to tell you it was good. It was not just good, it was scary good. Probably one of the best action movies that I have seen ever, and I have seen a lot of movies.

Anyway you may be wondering how does this apply to the mortgage industry? Well let me tell you, in the movie Batman does everything that he can to prevent the Joker ( Oscar performance by Heath Ledger) from continuing to terrorize Gotham City. The Sub prime lender’s, the central banks and the government over reacting by changing mortgage insurance policy has done nothing short but terrorize it’s citizen’s. Sure our options are narrowing, for the people with less than perfect credit, the one’s who are self employed and the one’s that want to buy commercial property. However you must realize that they have not cut off every means of escape, you don’t realize that we live in a vacuum. When one option disaperars another one must take it’s place. The options are there they are just not the same as the one’s we lost. Here are a few examples, we lose 40 year amortization’s and 100% financing, Wells Fargo still has them, Interbay pull’s it’s small commercial lending program’s, there are plenty of private lenders willing to fill the void.  

If you are feeling trapped like all your means of escape are cut off, and that you have run out of options,then it is time to take back control. Be the caped crusader in your own life by cutting the apron strings to the banks. If you owe them money then they are in control. It’s time to take it back and let us show you how to do it!

Cheers,
Pat

Sub-prime lender Wells Fargo beats expectations!

Reuters

July 16, 2008 at 8:27 AM EDT

NEW YORK — — Wells Fargo & Co. [WFC-N], the fifth-largest U.S. bank, reported better-than-expected quarterly results on Wednesday and raised its dividend despite a 23 per cent decline in profit caused by deteriorating credit.

You may be wondering why is this important? Well let me tell you. Wells Fargo is largely an Alt-A or Sub prime lender here in Canada. We need options and Wells Fargo provides that. I have been a broker for over 5 years and many sub prime and Alt-A lenders have come and gone. Wells Fargo has stayed the course. “A” lenders are a dime a dozen, and many offer similar products. 

Let me give you some examples, say you have less than perfect credit, we can most likely find something for you at Wells Fargo, well what if you are self employed and can’t prove your income the traditional way, well there is a program for you at Wells Fargo, want a longer amortization ( they still have 40 year amortization’s), have higher debt load( over 40TDS%) or have no down payment (they will do 100% financing)  then Well Fargo again. 

So let me end by saying having options are good, and Wells Fargo gives us options as not everyone fits the same mold. If it’s good for Warren Buffett of Berkshire Hathaway ( he own’s 8.8% of the company) then it is good enough for me.

Cheers,

Pat