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Mortgage Broker News | 10 Jun 2010, 12:00 AM Agree 0
Wells Fargo & Co. is closing its Canadian outlets and will cease making customer loans, reported the Financial Post this morning.
  • Jane | 11 Jun 2010, 01:08 AM Agree 0
    It isn't Closing canadian sites... they've closed. No warning. So much for giving people a heads up that they were about to be unemployed again.
  • PurpleSky | 11 Jun 2010, 01:34 AM Agree 0
    Ouch...the whole thing seemed pretty dirty to me
  • balblabla | 11 Jun 2010, 03:02 AM Agree 0
    the worst part is... they were actually making good money off of it... but now, it will be easier for them to sell.
  • Russ Cameron | 11 Jun 2010, 03:29 AM Agree 0
    You would wonder how WFF got so large..it wasn't because of their common sense in Res Mtges with high rates and being a lender of last resort in Canada..we have low delinquency in Canada or at least normal lender so...in fact the banks have for the most part very low delinquency and the res mtges business is a very profitable..what happened to WFF they pull out of secure market and stay in one of the highest risk ones in the world
  • DJP | 11 Jun 2010, 04:29 AM Agree 0
    Notwithstanding the reasons for Well's branch closures, it only continues the widening of the great devide of financial services availability to the "B" market client. There are a great many people in this country that are unable to meet the often excessive credit qualification demands required by traditional "A" lenders. This is true in both mortgage and non-mortgage lending. Ultimately, the closure of a company like Wells Fargo only means less choices for the consumer who just can't reach that "A" rating plateau. It's a sad day for a multitude of previous, and future, would be borrowers.
  • Zoltan Padar | 11 Jun 2010, 04:49 AM Agree 0
    As we all know, those mortgages will not be renewed upon the maturity date arrival. Many of them will be in foreclosure, regardless the borrowers track record. Thant is why so important for borrowers to get mortgages from a mainstream bank even if it takes time to save up the higher down payment or have to have a clean credit record. On the other hand, these lenders, whether they are closing doors or not renewing mortgages for the reason of they do "not carry that product" the mortgage was originally approved under, will result a lot of foreclosures. Unfortunately you can not force any mortgage to be renewed, however clients with 100% pay record should not be forced into foreclosure. USA has done it, look what happened. Teaser rates expired and the interest rates doubled some cases quadrupled at maturity. Instead of negotiating they had adapted a cut lose policy. Idiots, calling themselves world leaders. Of course they will never learn. WFF one of them. I remember in 1981 I heard they were the one abandon ship among the first ones, however they are not leaving a sinking ship, but rather climbing back onto one at this time.
  • farnice | 11 Jun 2010, 06:33 AM Agree 0
    It did not happen in one day.. it had been going on for quite some time - more than a year for sure. I have a different view about sub prime lending. If people know they have choices despite having a vitiated credit bureau their tendency to default on payment with A rated lenders would be encouraged. Once they are aware, that with poor cbr they wont be able to get house loan or auto loan, they would be more careful in their repayments.The age-old saying is still true " Cut your coat according to your cloth." Therefore, I am sure in the absence of sub-prime lending the portfolio of Canadian banks and other national lending institutions would improve; at the same time it important for these banks and institutions to maintain the qualifying criteria strictly and ensure that in case of defaults customers are provided ample opportunities with work out plans to bring their account up to date.
  • joe | 11 Jun 2010, 01:46 PM Agree 0
    "Ultimately!!!" says it nicely - there's a huge market for B lending (sub-prime) in Canada and it's most unfortunate that Wells has left town. People are people and often put their spending ahead of their bills so a lender like Wells is a perfect match for them - trust me, there's lots of them out there. I'm sure Wells was profitable in Canada and I would bet a large sum that Wells USA simply wants to be out of the sub-prime market in attempt to polish their image. With a recession end in site who in their right mind would want to be attached to any form of sub-prime lending considering the general public still, in their ignorance continues to blame the recession entirely on the sub-prime folks.... Sad day for all those employees and their families. Sad too for the customers that Wells served - less choice means higher costs to the consumer...
  • Robert | 12 Jun 2010, 07:09 AM Agree 0
    I guess now that their gone...who's next? HSBC & Citifinancial are the only "finance" companies hanging for the time being. Citifinancial pulled thier broker business over a year ago, and have also been up for sale for some time. HSBC did like wise with their broker business also. Also, Citifinancial closed over 50 offices just recently, so with all the turmoil...who's next? I'm hoping that someone like Citigroup will see the opportunity and instead of selling their interest, perhaps look to expand. It's not like the market isnt here for their services, and to be honest a profit for this company would be a good thing.
  • angry | 03 Jul 2010, 05:41 AM Agree 0
    What this company has done is destroy the lives of those who has mortagages with them. Shame on them for not giving their existing clients more notice and options. What are people who's mortgages are up going to do now? They will LOSE THEIR HOMES, that is what. What a disgrace of a company.
  • Sean | 08 Jul 2010, 11:49 AM Agree 0
    While Wells Fargo is infact ruining the lives of there current mortgage customers, I must say that I feel I was so much farther ahead 2 years ago prior to the application of a mortgage with the company. I have never missed a payment, not once. My mortgage comes up for renewal in less than a year and I just don't Meet the qualifications required for the A lender due to income. I will loose my home and will possibly be forced into Bankruptsy. the option to sell prior to date of renewal is out as the market has tanked in my area leaving me unable at the moment to recover the balance due upon renewal date. I am not alone, what can we do? Is a class action suit an option? I know what I signed and I know what the risks were, I was willing to pay a higher rate in order to be a home owner. I feel I have been greatly taken adantage of, tens of thousands gone!!! Is this not fraud? How can I save my home if I cannot qualify for A lending in Canada?
  • derek | 09 Jul 2010, 12:46 PM Agree 0
    in the exact same boat as sean....sean email me munky_spike69@hotmail.com
  • Fred | 17 Aug 2010, 04:11 AM Agree 0
    I'm here with you guys due to a bankruptcy 2yrs ago I can't qualify anywhere combine that with being self employed and you have a double negative...My mortgage comes up in November I just got my letter stating teh balance is due in November.....Here's a question can a company foreclose on you because they decided to get out of lending here...I thought they can only foreclose if your delinquent in your payments not for their poor business practices.....
  • John | 18 Aug 2010, 08:15 PM Agree 0
    Seems to me that WFF are not making money in Canada, if they were, why would they leave. Just to screw us Canuks over. Na, they are a big US bank, if money was being made, they would still be here.

    Most of my clients that I signed up at WFF were there because of credit issues. We nag at them to make sure they realize that they have 3 -5 years to fix their credit and go mainstream, if they have not done so in this time, they are now truly screwed.

    A lender has every right not to renew a mortgage, there does not have to be a default at renewal, they can just say, "I don't like the way the wind is blowing so we are not renewing your mortgage. Same as the mortgagee can move elsewhere.

    They cannot call a loan/mortgage as long as the payments are being made.

    As for the ones that posted here in the BFS and debt servicing problems, my heart truly bleeds for you because I see no other alternative other than CITI financial, (And I had a CITI manager in my office just last week inquiring about coming on as a commissioned mortgage broker, he is "connected" with some of the top guys who are hinting that CITI will be gone in the near future.)

    It does not bode well for some people.
  • Rene Torcelino | 27 Sep 2010, 02:14 AM Agree 0
    what happen to us , our renewal comes next year and they dont have services to offer. Am I going to be force to go in foreclosure?
  • john | 01 Oct 2010, 07:57 PM Agree 0
    Yes you will be in foreclosure IF you have not improved your credit standing during the past 3-5 years., Go find a good broker who can get you placed, and you need to find a good broker NOW, not a week before your mortgage is up.
  • Louise M | 19 Jan 2011, 05:37 AM Agree 0
    I have a mortgage with WWF fir seven years. Always made my payment on time. I am given only few months to organise a new mortgage. On top of that they have the gal to ask for a 6 months penalty if you find an other mortgage and pay them before the due date. They want it all every which way.They are forcing you to look for an other mortgage or loosing your house. They should not be allow to ask for a 6 months penalty on top of that. Talking about being greedy. Shame on them. Leave to the Americans to screw up Canadians.
  • Relieved | 05 May 2011, 03:09 AM Agree 0
    Anyone has a mortgage with WF in Canada, mortgage is due and reads this, I hope you got a sweet deal when refinancing like I did. Yes I paid a pile of money because of interest rate and bought high, but new mortgage company gave a price and WF took it. Almost $30,000 they walked away from rather than foreclosing(which would cost them much more). There is hope!!
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