Wells Fargo is such a disaster

CA · Member since 2016 · 1k+ posts · 1k+ votes

This is such a disaster....

So I am trying to get a HELOC with WF... Their UW looked at my financial, talked to me, and told me my DTI was 23%... My own cal showed 30% ish, but I am OK with 23%...

Credit approval, conditions.... 1 whole week into "final approval" and UW asked to talk to me again because my DTI is above their guideline of 45%.... What?????

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Wayne Brooks

Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes

@Deren Huang WF only owns about 20% of the loans they service. Short sale value issue are usually with the investor who actually owns the note.

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Russell BrazilBusiness Member
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Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
9y
Instead of wasting your time at a big box shop like Wells Fargo....why dont you contact @Chris Mason who is in your area.
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Chris MasonPro Member
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Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
9y
Love the sentiment @Russell Brazil, but the truth is actually that your big box retail banks have the best HELOCs. If a HELOC is the right solution, a big box bank is the way to go, even though the process really sucks. Not every tool is appropriate for every job. :)
Our HELOC is designed primarily for Jumbo 80/10/10 SFR owner occupants. The risk is built into the rate, even when you aren't using it for 80/10/10. I can't in good faith offer it as a stand-alone product; it only makes sense if it's being used for its intended purpose.
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Diane G.
OP
CA · Member since 2016 · 1k+ posts · 1k+ votes
9y
@ Russell brazil... @Chris Mason
call scheduled with WF UW at 3pm... waiting to see what he has to say....
This is all math...
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Diane G.
OP
CA · Member since 2016 · 1k+ posts · 1k+ votes
9y
had my call with WF UW... It turns out that he plugged expense from one property into another property, meaning the same mortgage payment are used twice, one in the correct property, one in my "free and clear" property....
I did a full reconciliation, sent to him, waiting for him to call me back... Hope is solved all my problems...Lol.... But I have to give this guy the full credit of being open minded and sent me his entire calculation.... so that I could do the reconciliation...
Lol
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Diane G.
OP
CA · Member since 2016 · 1k+ posts · 1k+ votes
9y
I am actually impressed by this WF UW... We are all human and make human mistake... No big deal...But the open mindedness and customer services goes a long way....Lol
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Deren Huang
Real Estate Agent · Tulsa, OK · Member since 2016 · 408 posts · 242 votes
9y
Not a big fan of WF, tried to do a short sale through them.. Brand new construction was selling for 165k, they said they would short sale it 180k... same model mine was 4 year old.
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Wayne Brooks
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
9y
@Deren Huang WF only owns about 20% of the loans they service. Short sale value issue are usually with the investor who actually owns the note.
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Deren Huang
Real Estate Agent · Tulsa, OK · Member since 2016 · 408 posts · 242 votes
9y
@Wayne Brooks
I'm pretty sure this one was owned by them. It was a pretty terrible experience, oh well. I hate short sales.
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Diane G.
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CA · Member since 2016 · 1k+ posts · 1k+ votes
9y
Mine is a rental property... And it turned out that for rental HELOC, WF requires 60% LTV, 38% DTI, 12 month of reserve (on all my rentals combined).... So it is a tall order....Once we fix this double counting issue, we should be all good to go... Yea....
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Account Closed
Investor · Denver, CO · Member since 2016 · 736 posts · 582 votes
9y
I've had very bad experiences with Wells Fargo that have cost me both earnest money and credit points in the form of inquiries because of their incompetence. I'm not a fan.
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Aaron Smith
Durham, NC · Member since 2014 · 104 posts · 68 votes
9y
Suntrust gave me 75% LTV at prime + 0% just this past November. $315,000 HELOC line. Suntrust has always done well for me. BofA an WF, not at all.
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Account Closed
Johnson City, TN · Member since 2014 · 586 posts · 705 votes
9y
@Aaron Smith is that for an investment property?
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Aaron Smith
Durham, NC · Member since 2014 · 104 posts · 68 votes
9y
no, primary. Are you using Wells Fargo for an investment property? I didn't even know that a big bank does investment property HELOCs! Who else does it?
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Chris MasonPro Member
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Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
9y
Originally posted by @Aaron Smith:

no, primary. Are you using Wells Fargo for an investment property? I didn't even know that a big bank does investment property HELOCs! Who else does it?
My gal at California Bank and Trust. It'll probably be a regional commercial bank near you.
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Diane G.
OP
CA · Member since 2016 · 1k+ posts · 1k+ votes
9y
Yes.. HELOC on rental property
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Diane G.
OP
CA · Member since 2016 · 1k+ posts · 1k+ votes
9y
BofA is a nightmare... about 6 years ago, I was buying a REO from BofA, and tried to finance with them.... Ok all the way until the very end, told me I did not qualify because I might owe child support to my ex based on income, even thought divorce decree said no child support .... WF came to my resure that time, closed in 14 days for me....
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Wayne Brooks
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
9y
One thing to remover about the big banks, in addition to their own extra overlays on loans, their loan officers (a least in FL) don't have to be licensed MLO's, just receive their internal training/sales programs.
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
9y
@Wayne Brooks WF home loans in our market is very schetchy for the reasons you mention no real training in the ways of MLO ing.... just a bureaucrat who gets paid to sit at a desk.. LOL..
indpendants are paid commission deal does not close they don't eat. big difference
I won't accept an offer on my new construction if the buyer is using WF or ROCKET both basket cases.
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Wayne Brooks
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
9y
@Jay Hinrichs Rocket/Quicken for sure!
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
9y
@Wayne Brooks yup one and done with Rocket/Quicken for new builds they were just over the top terrible.
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David Dachtera
Rental Property Investor · Rockford, IL · Member since 2014 · 4k+ posts · 2k+ votes
9y
@Diane G.,
Indeed - it's a rare person with the courage to admit a mistake!
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Deren Huang
Real Estate Agent · Tulsa, OK · Member since 2016 · 408 posts · 242 votes
9y
@Jay Hinrichs
I tell new agents, "any lender you use has to be in choking distance of you arms."
Had terrible experiences with Rocket and out of state/city lenders.
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Diane G.
OP
CA · Member since 2016 · 1k+ posts · 1k+ votes
9y
Update - after being told that my loan would go thru 15 times in 6 weeks, they declined it today... For 2 reasons...
1. the DTI is 38%, not the 45% that I have been told all along... They first calculated it to be 23%, now adding in the new HELOC it jumped to 42%, including a double counting the UW did... Every time I said your math is wrong, he said he is following procedure which is not up to me to challenge...Boy.
2. They need a post close reserve of $81K outside of retirement accounts..which I don't have now...
I guess #2 is the killer, so I gave up on #1 even though my DTI would be below 38% if UW back out the double counting of my expenses...
Sucks....
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Rohan J.
Los Angeles, CA · Member since 2015 · 176 posts · 48 votes
9y
Jay Hinrichs Chris Mason if not BOA or WF, which big bank would you recommend developing a relationship for purchasing commercial properties? I'm in Los Angeles but I buy in KC, Indianapolis, and Jacksonville.
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Chris MasonPro Member
Moderator
Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
9y
Originally posted by @Rohan J.:

Jay Hinrichs Chris Mason if not BOA or WF, which big bank would you recommend developing a relationship for purchasing commercial properties?
I'm in Los Angeles but I buy in KC, Indianapolis, and Jacksonville.
Local commercial bank. The one I send folks to will not even talk to you if it's not in one of the 9 Bay Area counties. Down in your area, I'm sure there's a few similar banks.
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