Saturday, May 24, 2008

WFC Eliminates Cash-Out Refinancing

From the Portland Business Journal:

Wells Fargo & Co. has raised the credit requirements for people seeking some types of home loans, the company confirmed Friday.
The San Francisco-based bank will require higher credit scores for potential home buyers seeking loans that cover 95 percent or more of a home's value. The bank didn't give further details.
Wells Fargo (NYSE: WFC) has also eliminated some cash-out refinancings for clients with loans that represent more than 80 percent of their home's price. A statement from the company said the measure was undertaken "in response to market and industry changes."
The bank last month reported that its profit fell 11 percent, in part because of a higher number of delinquent loans.

The pool of qualified buyers continues to shrink.