Wells Home Equity Stops Taking 80%+ CLTVs

Wells Fargo Home Equity is no longer accepting new applications with a combined loan-to-value ratio greater than 80%, thus reducing its equity loan-to-value ceiling by 5% across the board, according to Wells Fargo & Co., San Francisco. The bank said it would stop accepting submissions of stand-alone transactions with a CLTV greater than 80% on July 12, and advised that all simultaneous Wells Fargo transactions with a CLTV greater than 80% should be registered before July 12. "Exceptions to the 80% maximum will not be allowed," the bank said. Wells Fargo also announced guideline information tips for investors, effective July 14, "for all conventional conforming loans." It included a six-month seasoning requirement for cash-out refinances, among others.