Wells Fargo CEO: Principal Reduction Not the Answer
Wells Fargo CEO: Principal Reduction Not the Answer
Wells Fargo CEO: Principal Reduction Not the Answer
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March 14, 2011 (Shirley Allen)
mortgage-wells-stagecoach-image
Wells Fargo & Co. CEO John Stumpf said that principal reductions could have a “huge impact” on Freddie Mac and Fannie Mae and that such a strategy could entice homeowners to default on their current loans in order to get a better deal, echoing the worries made last week by Bank of America chief executive Brian T. Moynihan.

Speaking at the Citigroup Inc Financial Services Conference, Stumpf said, “It’s a tool in our toolbox, but it’s not always the answer.” Stumpf also who noted the bank has forgiven $4 billion in loan principal for loans on its books.

“It makes no sense to (entice) people not to pay their debts,” he said.

Typically, when bank’s currently modify a mortgage, they reduce the interest rate, or extend the repayment period, however, the key provision under the mortgage settlement plan presented to the five largest mortgage servicers last week, calls for the reduction of a borrowers principal.

Last week, Bank of America’s Moynihan rejected the proposal by The Obama Administration, all 50 state attorneys general, along with a host of federal agencies, claiming that the proposal was unworkable and unfair.

House Republicans have also joined in by denouncing the program and questioning the legal authority for many of the actions proposed in the settlement proposal. Republican Senator Richard Shelby of Alabama calls the proposal a “shakedown.”

Tags: Wells Fargo, Bank of America, principal reduction, Freddie Mac, Fannie Mae, mortgage modification, mortgage settlement, loan principal

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Loan Comparison

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Todays Mortgage
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March 14, 2011 (Shirley Allen)
mortgage-wells-stagecoach-image
Wells Fargo & Co. CEO John Stumpf said that principal reductions could have a “huge impact” on Freddie Mac and Fannie Mae and that such a strategy could entice homeowners to default on their current loans in order to get a better deal, echoing the worries made last week by Bank of America chief executive Brian T. Moynihan.

Speaking at the Citigroup Inc Financial Services Conference, Stumpf said, “It’s a tool in our toolbox, but it’s not always the answer.” Stumpf also who noted the bank has forgiven $4 billion in loan principal for loans on its books.

“It makes no sense to (entice) people not to pay their debts,” he said.

Typically, when bank’s currently modify a mortgage, they reduce the interest rate, or extend the repayment period, however, the key provision under the mortgage settlement plan presented to the five largest mortgage servicers last week, calls for the reduction of a borrowers principal.

Last week, Bank of America’s Moynihan rejected the proposal by The Obama Administration, all 50 state attorneys general, along with a host of federal agencies, claiming that the proposal was unworkable and unfair.

House Republicans have also joined in by denouncing the program and questioning the legal authority for many of the actions proposed in the settlement proposal. Republican Senator Richard Shelby of Alabama calls the proposal a “shakedown.”

Tags: Wells Fargo, Bank of America, principal reduction, Freddie Mac, Fannie Mae, mortgage modification, mortgage settlement, loan principal

FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at LoanRateNetwork and the offers you have received, you've found the right product and the best rate.
HOW LOANRATENETWORK
LOAN CENTER WORKS
ADVANTAGES OF USING
LOANRATENETWORK
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.
Helpful Tools

March 14, 2011 (Shirley Allen)
mortgage-wells-stagecoach-image
Wells Fargo & Co. CEO John Stumpf said that principal reductions could have a “huge impact” on Freddie Mac and Fannie Mae and that such a strategy could entice homeowners to default on their current loans in order to get a better deal, echoing the worries made last week by Bank of America chief executive Brian T. Moynihan.

Speaking at the Citigroup Inc Financial Services Conference, Stumpf said, “It’s a tool in our toolbox, but it’s not always the answer.” Stumpf also who noted the bank has forgiven $4 billion in loan principal for loans on its books.

“It makes no sense to (entice) people not to pay their debts,” he said.

Typically, when bank’s currently modify a mortgage, they reduce the interest rate, or extend the repayment period, however, the key provision under the mortgage settlement plan presented to the five largest mortgage servicers last week, calls for the reduction of a borrowers principal.

Last week, Bank of America’s Moynihan rejected the proposal by The Obama Administration, all 50 state attorneys general, along with a host of federal agencies, claiming that the proposal was unworkable and unfair.

House Republicans have also joined in by denouncing the program and questioning the legal authority for many of the actions proposed in the settlement proposal. Republican Senator Richard Shelby of Alabama calls the proposal a “shakedown.”

Tags: Wells Fargo, Bank of America, principal reduction, Freddie Mac, Fannie Mae, mortgage modification, mortgage settlement, loan principal

HOW LOANRATENETWORK
LOAN CENTER WORKS
FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at LoanRateNetwork and the offers you have received, you've found the right product and the best rate.
ADVANTAGES OF USING
LOANRATENETWORK
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT
CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.