Wells Fargo settled a big law and also decided to end mortgage brokered or otherwise called wholesale lending. Now, if you want a loan then you MUST go to Wells Fargo directly. This is very significant because Well Fargo is underwriting 1/3 of the home mortgage loans.
By Tom Schoenberg, Hugh Son and Dakin Campbell – Jul 12, 2012 11:58 AM PT
Wells Fargo & Co. (WFC), the largest U.S. mortgage lender, will pay $125 million and set up a $50 million assistance fund to settle U.S. allegations that it discriminated against minority borrowers.
The bank will also stop using outside brokers to create mortgages, according to a statement today from Wells Fargo. The accord settles U.S. accusations in court filings that the bank put creditworthy Hispanic and African-American borrowers into more expensive subprime loans from 2004 to 2007, and that mortgage brokers through 2009 added charges that caused minority borrowers to pay higher fees, costs and interest than similar white borrowers.
“Wells Fargo’s internal documents reveal that senior officials were aware of the numerous tactics that subprime originators employed to keep loans in the subprime division,” when they could have qualified for prime loans, the Justice Department alleged in a complaint filed with the settlement in Washington.
The San Francisco-based bank, which controls about a third of the market for all new home loans, denied it engaged in illegal discrimination and said it agreed to settle solely to avoid litigation, according to a proposed consent order. The company reported a $15.9 billion profit last year.
“Wells Fargo asserts that throughout the period of time at issue in this proceeding and to the present, it has treated all customers fairly and without regard to impermissible factors such as race and national origin,” the bank said in the consent order, which must be approved by a federal judge.
Garden Grove Overview
| Median home price is $325,000. Based on a rental parity value of $466,000, this market is under valued. |
| Monthly payment affordability has been improving over the last 10 month(s). Momentum suggests improving affordability. |
| Resale prices on a $/SF basis declined from $233/SF to $232/SF. |
| Resale prices have been weak for 12 month(s). Price momentum suggests weak prices over the next three months. |
| Median rental rates increased $0 last month from $$1,932 to $$1,933. |
| Rents have been slowly rising for 12 month(s). Price momentum suggests slowly rising rents over the next three months. |
| Market rating = 7 |
Proprietary OC Housing News home purchase analysis 
9902 ALDGATE Garden Grove, CA 92841
$457,000 …….. Asking Price
$375,000 ………. Purchase Price
12/22/2010 ………. Purchase Date
$82,000 ………. Gross Gain (Loss)
($30,000) ………… Commissions and Costs at 8%
============================================
$52,000 ………. Net Gain (Loss)
============================================
21.9% ………. Gross Percent Change
13.9% ………. Net Percent Change
12.6% ………… Annual Appreciation
Cost of Home Ownership
——————————————————————————
$457,000 …….. Asking Price
$15,995 ………… 3.5% Down FHA Financing
3.80% …………. Mortgage Interest Rate
30 ……………… Number of Years
$441,005 …….. Mortgage
$117,081 ………. Income Requirement
$2,055 ………… Monthly Mortgage Payment
$396 ………… Property Tax at 1.04%
………… Mello Roos & Special Taxes
$114 ………… Homeowners Insurance at 0.3%
$459 ………… Private Mortgage Insurance
………… Homeowners Association Fees
============================================
$3,025 ………. Monthly Cash Outlays
($314) ………. Tax Savings
($658) ………. Equity Hidden in Payment
$20 ………….. Lost Income to Down Payment
$134 ………….. Maintenance and Replacement Reserves
============================================
$2,207 ………. Monthly Cost of Ownership
Cash Acquisition Demands
——————————————————————————
$6,070 ………… Furnishing and Move In at 1% + $1,500
$6,070 ………… Closing Costs at 1% + $1,500
$4,410 ………… Interest Points
$15,995 ………… Down Payment
============================================
$32,545 ………. Total Cash Costs
$33,800 ………. Emergency Cash Reserves
============================================
$66,345 ………. Total Savings Needed
——————————————————————————————————————————————-
This property is available for sale via the MLS.
Please contact Shevy Akason, #01836707
949.769.1599……
sales@ochousingnews.com…..
We're sorry, but it seems that we're having some problems loading MLS # S704202 from our database. Please check back soon.
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$379,900 9642 KATELLA Ave |
0.31 miles 3 bd / 3 ba 1,280 Sq. Ft. |
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$365,000 2107 West CRESTWOOD Ln |
0.52 miles 3 bd / 2 ba 1,910 Sq. Ft. |
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$380,000 10351 GERALDINE Rd |
0.56 miles 3 bd / 1.75 ba 1,583 Sq. Ft. |
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$409,900 9332 JOYZELLE Dr |
0.6 miles 5 bd / 2 ba 1,832 Sq. Ft. |
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$449,000 9302 DEWEY Dr |
0.6 miles 3 bd / 1.75 ba 1,505 Sq. Ft. |
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$469,777 9642 SKYLARK Blvd |
0.68 miles 4 bd / 2 ba 1,767 Sq. Ft. |
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$275,000 10302 PERDIDO St |
0.89 miles 4 bd / 2 ba 1,451 Sq. Ft. |
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$409,990 12031 MORRIE Ln |
0.96 miles 4 bd / 2.5 ba 1,268 Sq. Ft. |
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$420,000 1815 West BERNARDY Pl |
1.03 miles 3 bd / 2 ba 1,583 Sq. Ft. |
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$340,000 2455 West CHANTICLEER Rd |
1.05 miles 3 bd / 2 ba 1,347 Sq. Ft |
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Redfin: Rising Demand, Falling Supply Driving Home Prices Up
Real estate broker Redfin released the June results of its Real-Time Home Price Tracker, showing home price increases in nearly all 19 major U.S. markets.
The tracker showed an average year-over-year price gain of 3 percent across all major markets and a monthly gain of 2.6 percent. Sales volumes also rose year-over-year (a 7.4 percent increase) but fell 1.1 percent month-over-month. Overall inventory levels declined, falling 25.3 percent from June 2011 and 2.4 percent from May this year.
The price data, combined with an earlier Redfin report that showed demand broadening, points to a strengthening market, said Redfin CEO Glenn Kelman. Kelman expects prices to continue to rise, but said he’s interested to see what happens next.
“Prices in June rose year over year for the second straight month, but the true test lies ahead,” said Kelman. “For the first time in five years, we’re seeing sellers enter the market to take advantage of rising demand, not just out of sheer necessity. We thus expect listing prices to increase, even as employment remains weak and Europe’s debt crisis continues. In competitive markets like the San Francisco Bay Area, buyers will likely rise to the bait. Elsewhere the market may falter.”
Out of the 19 markets served by Redfin, 16 showed annual price increases, with Phoenix posting the greatest gains (28.7 percent, the only double-digit year-over-year increase in all markets). Of the markets that posted decreases, Long Island suffered the most (a 4.4 percent drop). In month-over-month data, 16 markets showed price increases-Portland and California’s Inland Empire stayed flat, and Austin fell 0.1 percent.
Additionally, the tracker showed that homeowners who listed their homes sold very quickly, with all single-family homes listed in the first three weeks of June finding a buyer within two weeks of debut. The San Jose market actually saw 52.5 percent of homes selling within that short time frame.
While sales occurred quickly, the number of closings grew only modestly since last year, owing partly to lack of inventory. Closings of single-family homes increased 4.3 percent since last year. The biggest drops in sales volume were found in places where inventory was in shortest supply: Sacramento, San Jose, the Inland Empire, and Denver.