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Requirements on Jumbo Loans Just Got Tighter From Wells Fargo

New HouseTom WraggWells Fargo is tightening the guidelines on a regular basis.

You may not be in a distressed area but the guidelines are much tighter then 6 months ago and far tighter versus a year ago.
Wells Fargo has increased the FICO requirement on jumbo loans from 620 to now a minimum score of 680.  The max DTI went from 50% down to 45%.  I know Wells Fargo is usually the front runner in jumbo pricing so if you are quoting a rate to your borrower please make sure this announcement does not eliminate your borrower from going to Wells.  They also have changes to the Limited Doc/VOA program.   
THE NEW GUIDELINES ARE EFFECTIVE DECEMBER 15, 2007. 
Wells Fargo appraisal guidelines are as follows:

  1. At least three sales closed within the previous six months
  2. Comps should be within one mile/12 blocks of the subject (urban/surban)
  3. Rural areas comps must be within 10 miles

Wells is also watching the Soft and Distressed Markets. 

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Perri K Feldman

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