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Wells Fargo to cut originator joint ventures as Dodd-Frank hits

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Mortgage Professional America | 26 Jul 2013, 08:15 AM Agree 0
Dodd-Frank regulations are forcing the nation’s largest residential home lender to cut eight joint ventures with other originators, according to a report
  • David Leahey | | 26 Jul 2013, 09:34 AM Agree 0
    nice to see that FD is doing something to crack down on continued questionable lending practices of the big companies. I would expect nothing less of the big boys.....
  • James Wu | | 26 Jul 2013, 09:50 AM Agree 0
    It is just a way that big banks cut relations with small companies and get more business in its own branches. This will reduce competition and raise the consumer cost.
  • Mark Po | | 26 Jul 2013, 09:59 AM Agree 0
    Remember the Golden Rule...he who has the gold makes the rules.
  • being human | | 26 Jul 2013, 10:04 AM Agree 0
    when you aren't a bank. there are around 30 forms to get signed. All the big lenders are only dealing with table funding lenders now. 3 forms compared to 30. Now who looses out? without all the information. The consumer.
  • Greg Cook | | 26 Jul 2013, 10:18 AM Agree 0
    Unless I missed something this is good news for "other" originators. If the CFPB is cracking down on joint ventures and MSA's that should open up more doors for the rest of us.
  • Former Prosperity Mortgage | | 26 Jul 2013, 11:18 AM Agree 0
    I used to work for Prosperity Mortgage, until I raised the curtin a little and saw what was happening with some the transaction income. There is currently filed a class action suit by former LO's against Prosperity for unpaid income, not sure where it is, but they, IMO were rotten from the top.
  • janet | | 26 Jul 2013, 11:31 AM Agree 0
    so when are they going to crack down on builders using their affiliate mortgage companies?
  • H.G. Rudh | | 26 Jul 2013, 12:04 PM Agree 0
    Just another political move! If they REALLY wanted to crack down they would make all banks,S&L's,ect have only Licensed originators.Imagine a fair and equitable mortgage system that protects the consumer and the mortgage originators. All originators should be licensed including banks. They just want a reason to look good on the surface, but are actually trying to increase their profits.
  • Mike denker | | 26 Jul 2013, 12:10 PM Agree 0
    Mr. Wu's got it right. What Wells Fargo was doing was sending business to community banks. This ends that practice and centralizes mortgages, which means fewer lenders and higher costs. But CFPB was created to hurt banks, not help consumers, so this move is right in line with their mission.
  • David Leahey | | 26 Jul 2013, 12:17 PM Agree 0
    Wells Fargo did not get as big as they are by sending business elsewhere.
    This is a good thing for those of us that have been in this business since before the collapse.
    Proud to be a broker having to disclose with 30 forms.....
  • Victoria Reback | | 26 Jul 2013, 12:27 PM Agree 0
    Will this also affect the joint venture agreements lenders have with real estate companies/offices in general? Payment of desk space etc.?

    I truly hope so! It will open up doors to many of us trying to do business with real estate companies that have in house lenders.
  • Eddie | | 26 Jul 2013, 12:58 PM Agree 0
    When uncle Sam is watching over and protecting me I have very little to be concerned about.............. Limited consumer choice when it comes to products and financial services is not a good thing for the American Public. When competition and choice are limited the consumer/country suffers...
  • Bill Parisi | | 26 Jul 2013, 02:52 PM Agree 0
    did any of you notice the CUT IN JOBS; another 300. All these regulations coming out under the Obama admisnitration is doing everything possible to cut jobs! we have a very mortgageg 3 yrs to go
  • Greg Herman | | 26 Jul 2013, 07:19 PM Agree 0
    These are JV's and not MSAs. The JVs that Wells has are messy and need to be eliminated. Wells crossed the line so far they need to pay for the privilege of playing dirty. MSAs are going to be around for a long time. Buidlers are the main gangster in Real Estate and always have been. Spank the builder and the bank goes down too. They both deserve a dungeon.
  • Brian Gordon | | 27 Jul 2013, 07:10 AM Agree 0
    Wells is probably happy they are officially out of wholesale!
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