Why is Wells Frago Underwriting so slow and useless?? Based upon results they are useless! What gives with these obtuse individuals?

Asked by Voi, San Francisco, CA Tue Aug 14, 2012

Help the community by answering this question:

+ web reference
Web reference:


Laura Coffey, Agent, Santa Clarita, CA
Wed Aug 15, 2012
It's not a matter of reforming underwriter standards. It's a matter of them getting people that know what they're doing and understand guidelines.
I got know where, weeks late, until head VIPs got involved.
Inbox me if you want their emails.
Web Reference:  http://www.LauraCoffey.com
1 vote
, ,
Sat Oct 26, 2013
They are bank of enormous size and that slows things down. They also can hire loan officers that aren't licensed. Direct mortgage lenders like our company move much quicker and each loan officer must be licensed. Call or email for a free pre-approval and free credit report.

We can do: FHA, Conventional, USDA, VA, HARP, Interest Only, Home Equity, Fixed, and Variable. Find out which product is right for you by calling Brad at (855) 415-5626.

Brad Neumann
Sr. Loan Officer
Crosscountry Mortgage Inc.
Toll Free: (855) 415-5626 ext. 5734
Email: bneumann@myccmortgage.com
NMLS# 948036
0 votes
Jim Enright, , Chapel Hill, NC
Wed Aug 7, 2013
The mortgage approval process is like an assembly line. Fall off the line, and you'll have trouble....anywhere.

I've seen my local Wells Fargo do loans I could not...painful as that was...and have heard other not so happy loan stories.

- If you are working with a Realtor, get their input.
- Check with your friends who have bought recently.
- Do a local search for mortgage lender/broker
- Check out their website, reviews, and videos.
- Meet in person.

There are two distinct types of borrowers - Vanilla and Rocky Road.
Understand which type you are.

Be prepared in advance with all documentation.

Understand the 3 mortgage banking models- Retail, Broker, and Mortgage Correspondent.

Find a correspondent lender who approves loans locally.
Watch what I mean by local:
0 votes
Andy Bencosme, Agent, Sierra Madre, CA
Wed Aug 7, 2013
I have had some good results with Wells of late. Each underwriter is different though, so maybe it is time that the Mortgage Rep switch who they use. It is definitely possible to get good service from them, but it starts with the Loan Officer.

Good Luck!
0 votes
My NC Homes…, Agent, Chapel Hill, NC
Wed Aug 7, 2013
They've been extremely difficult to work with for the past several years (As have all the "big" banks)

I believe the reason is two fold, the first is that while they won't tell you so, all the big banks have overlaid additional underwriting requirements not mandated by the secondary market. which is where they sell all their loans. As I've written these are not required and they vary from bank to bank. Secondly they've essentially threatened their underwriters telling them in so many words "If you approve what turns out to be a loan we can't sell on the secondary market for any reason at all, you're going to be fired." Given a dictate like this and no clear instructions on what constitutes a "good" loan,; the easiest thing the underwriter can do is simply stall, say, no, and throw up hurdles. They've been put in a bad position and are simply trying to make the best of what is an unenviable position.

Experienced agents know this and most (like myself have simply stopped recommending any of the big banks to our clients and have found smaller, nimbler lenders who don't seem to have half the trouble issuing loans as the big banks do. At this point if you're in underwriting there's not much you can do but live with it, and once you're closed let them know that based on your experience you won't be doing any more business with them and will be advising your friends and family to avoid working with them. The only way it's going to change is when they've lost enough business to be forced to change.
0 votes
visvire, Home Buyer, Maryland
Wed Aug 7, 2013
i agree - it has taken 2.5 months to close this loan approaching 3 months- each interaction I have with them seems to result in a request for more information and never a straight answer. I get the sense there is no organization of information over there and left and right hands are completely separated.

No general concern is displayed for the consumer either- I don't think they understand that there is a real asset behind the paperwork either. Every day that passes, dirt and debris collects on the property. Every rain, additional water comes in through the leaks. None of this can be addressed until the loan closes. There is no one to turn to, except as in this case, I'm using my reserve funds to hire a lawyer.
0 votes
, ,
Wed Aug 15, 2012
Hi! As a mortgage banker (and broker for 20 years), we all feel your pain.

But to call them useless and misdirected is not fair. It seems that each underwriter is that way, but lets look at what they are up against.

An underwriter is responsible for their own loans going 'bad'. A file that is either bought back by the investor or goes into default is a reflection on the underwriter and may result in their job. So they are following the book by the letter. To blame shortcomings of a file on an underwriter, is like blaming a lemon on the driver.

I agree with my fellow loan officers, if the loan officer is doing their job, upfront, there should be zero surprises in underwriting. A good loan officer will make certain that all the documents of a file are in it prior to submitting it to an underwriter. An awesome loan officer will review every one of those pieces of documentation to uncover any questions an underwriter (or anyone else for that matter) will be asking about the file.

Stumbling blocks: large deposit sources (sit it on the bank statement at application, ask the borrower for documentation to go along with the large deposit. Was it a gift? A bonus?) If the deposit cannot be sourced (evidence of source of funds), that bank statement should not be submitted until the new one is issued.

Paycheck stubs (garnishments? time off?)

Tax returns? Even if your borrower is a W2 employee, get those 1040s up front and look to see what schedules are being file. Perhaps a small 'Avon' type businesss is being run. You would need to count the negative income for that...

There is so much to look at ahead of time for a loan officer. And it is the loan officer's responsiblity to know what the changes are (and there are changes constantly).

Underwriters can make mistakes. Once those mistakes are pointed out they will back off the condition.

It has been frustrating for all of us.

Another reason I think we may want to consider 40 days closes. Just a thought
0 votes
Gabriel Rojas, Agent, San Francisco, CA
Wed Aug 15, 2012
In my opinion, it isn't just Wells, it is several institutions and it is simply case by case. At this point it seems like we may just have to grin and bear it for now until things change. I've had extremely good results with B of A recently and can give you the name of my contact there if you'd like to email me directly.

Good luck and stay positive!

0 votes
Ivan Diaz, Mortgage Broker Or Lender, 79936
Wed Aug 15, 2012
This is what separates a good loan officer from a GREAT one. Putting the effort to package a file completely up front will prevent delays in Underwriting. This includes anticipating any questions an UW may ask. Most lenders are overwhelmed with files with Purchase loans given priority. It is our responsibility to manage these expectations, not underwriting. Having worked for a National Retail Bank and now a Mortgage Bank...I have seen that there is no substitute to Complete files. We have a saying - What you put in is what you get out. In addition, I will go as far as saying...Some loan officers will develop a reputation within the company as well. So if you are repeatedly seeing this...You may have to make a decision and give someone else a chance.

Good luck!

Ivan Diaz
Home Mortgage Consultant
(415) 271-7740 direct
0 votes
Rebecca White, Agent, San Francisco, CA
Wed Aug 15, 2012
Wells Frago? LOL!

ALL underwriting is slow. Having a good loan officer makes all the difference in the world. I was having a problem with a loan because my buyer inadvertently transposed a number on her SSN. My loan officer, Susan Costello, caught it. Then because underwriting over-analyzed the file again--because they didn't catch the mistake--Susan personally went from San Francisco to Walnut Creek to meet the underwriter and convince her to release the file.

I have had problems with almost all buyer loans in the past year. Having a strong and committed advocate like Susan is the only way to get something done.

I recommend using a major lender as opposed to a mortgage broker as well. I had a horrible experience with a mortgage broker recently. Prime Meridian or something. She kept blaming everyone else, wouldn't tell me anything and said that it was "out of her hands".

I think that we as Realtors really need to be pro-active and know our lenders and insist that our clients work with someone local whom we know and can work with as a team. Communication and relationships are becoming more critical than ever!
0 votes
David Tapper, Agent, Burlingame, CA
Wed Aug 15, 2012
I'm glad you asked because this is eye opening. My experience is Wells is actually one of the fastest to proccess loans from start to finish. Two months ago I had a loan with Wells Fargo and my Rep Holly Brand in Burlingame was able to remove the loan contingency in 10 days and close in 23 days.

ALL the lenders are backed up as well as are the appraisers. With money almost free, many home owners are refinancing which in turn is slowing down the proccess.

I'm sorry you had a bad experience. Did you provide a full package to them?

0 votes
Oggi Kashi, Agent, San Francisco, CA
Wed Aug 15, 2012
Are you just blowing off steam or are you looking for a solution? I have found WF Private Mortgage dept excellent to work with and they tend to stay ahead of schedule. Next time, try giving Michael Hoyt a call:

(650) 931-2810
Web Reference:  Http://www.oggikashi.com
0 votes
Matt Ciganek, Agent, San Francisco, CA
Wed Aug 15, 2012
Hi Stuart-Are you working with the "Private Mortgage" department? Where did you go to get your loan? I have clients who are currently experiencing excellent service from Wells Fargo. Contact me and I'll see if there's someone you can call to help out. The problem is definitely not company-wide. Thanks, Matt Ciganek
0 votes
My NC Homes…, Agent, Chapel Hill, NC
Wed Aug 15, 2012
It's not just Wells Fargo, you can add BOA, and other large national banks to the list. There are more regulations now that Fannie Mae and Freddie Mac have been burned by some many lenders and guidelines have tightened. The problem however is less with these regulations than with these big banks being too big and cumbersome and too greedy to hire enough staff to process loans in a timely manner. Do us all a favor and complain to your congressmen and senators that you want the 5 biggest banks in the country broken up.
0 votes
Suzanne MacD…, Agent, Succasunna, NJ
Wed Aug 15, 2012
Stuart, it's not just Wells Fargo, I have had the problems this year with two other large banks as well. We needed to reform underwriting standards, a few years ago we could get a mortgage for a ham sandwich and that wasn't good either. Unfortunately, as often happens, the pendulum swung WAY too far in the opposite direction. What we need now is for it to come back to center. Business owners seem to be the worst hit by these unfair and overly aggressive underwriting standards and that is particularly bad news. We need small business owners to be able to borrow money, whether for a home or to expand their businesses if we are to get this economy back on track. I am with you, something needs to be done! And not JUST at Wells Fargo!
0 votes
Search Advice
Ask our community a question

Email me when…

Learn more