Wells Fargo preps for non-QM loans
Creates army of underwriters
According to Bloomberg, Wells Fargo (WFC) assigned 400 underwriters to the task of originating non-QM mortgages for the bank to hold. Not all lending will be defined strictly by the qualified mortgage definition under the ability-to-repay rule.
As HousingWire previously reported at the beginning of December, Wells Fargo Home Mortgage said it will always ensure each borrower has the ability to repay, but loans issued may fall outside QM.
Wells Fargo will continue to cater to this group of borrowers. As Wells Fargo Home Mortgage Executive Vice President Brad Blackwell explained, the non-QM group is likely to include borrowers who have strong credit and an overall ability to meet the financial demands of the mortgage. Bloomberg noted that:
"The bank is training the group as a way to increase lending without losing control of quality, according to Blackwell. The group will review loans including those with terms that prevent them from qualifying for protections provided by the Consumer Financial Protection Bureau, or CFPB, under new rules, he said.
The underwriters will be located in six locations around the country and the training of the group and policy writing will be completed by the end of the year, Blackwell said."