Deprecated: mysql_connect(): The mysql extension is deprecated and will be removed in the future: use mysqli or PDO instead in /home1/haradeep/articleside.com/configdb.php on line 8

Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home1/haradeep/articleside.com/article.php on line 88
Wells Fargo trading practices: Victory or vice

Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Wells Fargo trading practices: Victory or vice

By Apil Gupta Subscribe to RSS | July 16th 2012 | Views:
loading
 
  



Even as Wells Fargo, one of America’s largest mortgage firms, maintains its stronghold over the mortgage market, there are doubts over its practices that are somewhat risky. However, the firm also supports smaller banks in their mortgage practices, which are of the opinion that if the bank scales down its operations, they would lose out on a huge source of liquidity. Many market experts also see this as a tactic on the part of Wells Fargo to control smaller banks. However, nevertheless, the fact is that the firm is helping smaller entities, which essentially helps the entire economy. Correspondent lending, which is essentially the backbone of the operations of smaller banks, could be risky for Wells Fargo as well. This is because loans that are written in house are of much superior quality than those which it buys from other banks. This could also be the reason so many of its competitors have refrained from correspondent lending. However, Wells Fargo got 42 percent of its mortgages last year from correspondent banks, and stated that its procedure for partner selection is based on many parameters like net worth and performance requirements.

Wells Fargo had benefited tremendously for showing restraint against not offering riskier mortgages that its competitors were indulging in, which included subprime loans wherein little was known about the borrower’s income. This move paid off, and Wells became the top mortgage lender in2008, and by 2009, it had close to 25 percent of the market, which was double its market share in2007. Last year, the firm also became the top mortgage payment collector. The firm also bought over Wachovia Corp, a North Carolina based company, in 2008, which gave it a portfolio of risky adjustable rate mortgages which are being liquidated over a period of time. However, it got more presence on the US East Coast as a result of this move.

The bank is today one of the very few firms that are investing in the mortgage business even as its competitors are pulling out. It now plans to add around 1,000 loan officers on a national level and is also in the process of hiring hundreds of underwriters, developing new systems for underwriting simultaneously. Till date, the investment is paying off pretty nicely, as the mortgage income climbed by 42 percent to $2.9 billion. However, only time will tell whether this is a sustained or short term profit.

Apil Gupta - About Author:
You can contact me for Adjustable rate mortgage, Home mortgages, Mortgage loan, 30 year mortgage rates, 15 year mortgage rates.

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/mortgage-articles/wells-fargo-trading-practices-victory-or-vice.htm

Related Mortgage Articles Subscribe to RSS

Looking for refinance mortgage loan - How to find the right one
Published by Apil Gupta on June 24th 2012 | Mortgage
In case you are looking to refinance mortgage loan for your home, there are many things that need co...
 
The best mortgage rate is only a systematic approach away!
Published by Jack Smith on May 22nd 2012 | Mortgage
Investigate the property market well and fulfill your dream of achieving the best mortgage rate for ...
 
Understand and consult bad credit mortgage rates
Published by Jack Smith on July 23rd 2012 | Mortgage
The people seeking bad credit mortgage rates first require to conduct complete research and pay atte...
 
Brokers getting importance for bad credit mortgage
Published by Jack Smith on July 24th 2012 | Mortgage
In the arena of bad credit mortgage the value of brokers, consultants and complete suggestion provid...
 
How can a mortgage loan calculator help you save
Published by Apil Gupta on June 24th 2012 | Mortgage
There would be many of you out there who would be considering taking a mortgage loan for fulfilling ...
 
Wells Fargo faces mortgage risk
Published by Apil Gupta on July 16th 2012 | Mortgage
One out of every three home loans in the USA is currently being funded by Wells Fargo and Co., which...
 
Beware of Yield Spread Premium on California mortgage rates
Published by Apil Gupta on June 24th 2012 | Mortgage
If you are going to refinance your mortgage because the California mortgage rates on your current pr...
 
Your guide to getting the best mortgage rates
Published by Jack Smith on April 18th 2012 | Mortgage
A systematic and well guided approach will certainly assist you in achieving the best mortgage rate ...
 
Good mortgage rates are important for a comfortable mortgage period
Published by Jack Smith on June 22nd 2012 | Mortgage
Get mortgage rates that you can easily pay off even in the future because a mortgage affair can last...
 
Your guide to finding the best mortgage rates
Published by Jack Smith on April 13th 2012 | Mortgage
The best mortgage rate may have to be decided upon after exploring several options but will be certa...
 
Best mortgage rate California – Use these time-tested tips
Published by Apil Gupta on June 24th 2012 | Mortgage
Finding the best mortgage rate California is more often than not like locating a needle in a haystac...
 
US mortgage rates hit record low at 3.66%
Published by Apil Gupta on July 16th 2012 | Mortgage
There was a significant drop in the US mortgage rates for 30 year fixed loans...
 
You can still borrow money with bad credit mortgage
Published by Jack Smith on June 24th 2012 | Mortgage
Bad credit mortgage is really helpful for those who have bad history in past, and with the help of t...
 
Adjustable mortgage rates opening paths for money saving
Published by Jack Smith on July 25th 2012 | Mortgage
In the field of finances, where Adjustable mortgage rates are becoming the most picked choice for al...
 
The coming back of the long-term fixed rate mortgage
Published by DavidVila on February 14th 2012 | Mortgage
There is a return of long-term deal of mortgage that is as long as 7 years as well as 10 years. Skip...
 
Appeal for best adjustable mortgage rates
Published by Jack Smith on July 25th 2012 | Mortgage
In the field of getting adjustable interest rates via the options of best adjustable mortgage rates ...
 
Second mortgage might require the help of a strong broker
Published by Thomasgalvin on January 3rd 2012 | Mortgage
Availing a loan for a specific purpose is one of he most arduous task in the whole wide world, what ...
 
Get out of a bad credit mortgage situation
Published by Jack Smith on June 20th 2012 | Mortgage
If you need a bad credit mortgage, there is no doubt that you are in a tight fix. But bail yourself ...
 
A mortgage club benefits individual lenders to increase their business
Published by Graves Cruz on June 6th 2012 | Mortgage
We have worked alongside The Buy to Let Business since its incorporation....
 
Most excellent home mortgage calculator plus home buying tips
Published by Andrew Watson on December 30th 2011 | Finance
For a number of people it certainly is very much common to look around for best mortgage calculator....