CNBC headline reads "Wells Fargo, once the No. 1 player in mortgages, is stepping back from the housing market"
Obviously, this is alarming news, right? Anyone would then start to think that they don't want to give home loans because the market is about to crash, they're afraid of defaults and the economy. Why else would Wells Fargo "step back" from making home loans? Well, friends, they're not. Furthermore, this type of half-truth journalism is super annoying.
So what is Wells Fargo actually doing and why is CNBC making it a headline? Basically, Wells Fargo is choosing not to buy loans from mortgage brokers / third-party lenders right now. Often times when a buyer gets a loan they use a mortgage broker as opposed to a mortgage banker. The mortgage broker shops for the best possible rate - going to banks and investors who will buy your loan. So, even though you go through ABC Mortgage, Wells Fargo may actually be the one servicing / owning the loan. Wells Fargo doesn't want to do that right now and is probably reducing risk. Any business whether it be a bank, real estate brokerage, restaurant or home builder makes changes as economic conditions go up and down. This is nothing new and it's good business.
Any buyer can still bypass a mortgage broker and get a home loan from Wells Fargo if they're well qualified. The article would have you believe that they're completely halting their mortgage business. This begs the question, is a half-truth a lie? Here's the definition of a half-truth -The statement might be partly true, the statement may be totally true, but only part of the whole truth, or it may use some deceptive element, such as improper punctuation, or double meaning, especially if the intent is to deceive, evade, blame or misrepresent the truth.
In 2023 watch out for doom and gloom clickbait. It works wonders to make you afraid when you really don't need to be! Here's an email I just received from a Wells Fargo Home lender.
While you may have heard about recent changes in Wells Fargo’s strategic direction for Home Lending, I’d like to clarify a few important points. First and foremost, I want to assure you – Wells Fargo continues to be committed to the Retail mortgage business along with our referral partners who have been – and will continue to be – the lifeblood of our Retail mortgage business.
We have a long legacy and proven track record in our ability to serve all of your homebuyers – and that will not change. As a part of our strategy, we will:
Continue to serve your customers’ home financing needs with exceptional service.
Create new offerings and a personalized, elevated experience for the 64 million+ customers we currently serve.
Launch products and programs for those in underserved communities with the goal of advancing racial equity in homeownership
Private Mortgage Banker Private Mortgage Banking NMLSR ID 413883
Wells Fargo Home Mortgage | 205 108th Ave NE, Suite 600 | Bellevue, WA 98004 MAC P6478-062 Tel 425-362-1868 | Cell 425-301-1897