Does your Builder recommend Wells Fargo as their in house lender?

[sgip]

That could change in the near future. Due to Consumer Financial Protection Bureau enforcements at other banks, Wells Fargo has decided it's not worth the litigation/compliance risk to retain "Marketing Service Agreements" (MSA's)

Once the big dog gets out of the play area, it will be interesting to see who fills that void.

http://www.mortgagenewsdaily.com/07302015_wells_fargo_cfpb.asp

My .02c

Soylent Green Is People.

 

[sky949]

Hi SGIP -- does this mean Wells Fargo will not be a preferred lender for IP properties starting tomorrow or in the next 90 days? - -as the article says "The decision is effective Aug. 1 and the wind down will occur over the following 90 days".

 

[paperboyNC]

"The company said termination of these marketing services agreements is not expected to have a material impact on Wells Fargo's total mortgage production. "

 

[sgip]

Any builder with an MSA - Wells/Prospect/etc - will now have to weigh the benefit of a known relationship, one that has been helpful in ways besides paying marketing dollars to them, versus moving over to a lender who will pick up the financial void, but is unknown in terms of performance and loan terms. Many builders walk away from very profitable MSA's because the MSA partner can't close a deal to save their lives.

My guess here is that WF will still have a significant presence with their current builder clients, but that enough of the other companies out there will poach business away and dent WF's origination volume. Other players are absolutely going to replace WF as a builders preferred lender, but it won't be overnight. 

Those non-builder sales agents who have desk rental's paid via an MSA? I'm thinking that plenty of them are already changing the locks on their front doors. The next guy in the seat formerly warmed by WF will be one who found a way to ensure the flow of mothers milk would continue to the right people.

My .02c

Soylent Green Is People.

 

[Hugo Township]

Those non-builder sales agents who have desk rental's paid via an MSA? I'm thinking that plenty of them are already changing the locks on their front doors. The next guy in the seat formerly warmed by WF will be one who found a way to ensure the flow of mothers milk would continue to the right people.

I've read and re-read this comment and am still trying to decode this riddle.