Due to a widespread drop in mortgage transactions throughout the country, Wells Fargo has lowered its requirements for loans on some high-priced homes as the largest U.S. mortgage lender tries to combat.
The government’s new regulations that went into effect in January have made mortgage approvals a lot more difficult for home buyers seeking to purchase a home using conforming or jumbo loan amounts. Otherwise it would be considered a nontraditional mortgage which puts the lender at more risk.
In a July survey, greater than fifty-percent of senior loan officers claim that the government’s new Qualified Mortgage rules and ability-to-repay has significantly reduced their approval rates on residential mortgage applications.
The minimum credit score on jumbo mortgages is 680 although with that score most lenders want more than ten-percent down. A few niche lenders will still do a 90-percent loan with a 680 credit score up to one million. Last week, the interest rate on a jumbo loan moved higher to 4.26% from 4.22%.