Wells Fargo Tightens Its Broker Menu

Wells Fargo & Co., the nation's largest residential wholesale lender, is once again tightening its menu of products available to loan brokers, including new restrictions on high-balance mortgages that it sells to Fannie Mae and Freddie Mac. In a "Newsflash" memo its wholesale department sent to brokers on Wednesday, Wells said it is lowering the allowable LTV on high balance loans to 80% from 95%. The change goes into affect Dec. 14, 2009. It also is telling brokers that non-occupant "co-borrowers" will no longer be allowed on these loans. Wells is also tightening its condominium loan requirements. Wells said it is making these changes because mortgage insurance companies are being more selective about what they will cover in regard to broker-sourced loans.