Wells Fargo Promises to Modify Home Equity Loans

[Apr 24, 2010.]

 

A New Promise to Modify Home Equity Loans

There is good news for anyone who has a Wells Fargo home equity loan and has been trying to modify under the Home Affordable Modification Program (HAMP). Wells Fargo announced that it would begin modifying its own home equity loans for customers who also have a Wells Fargo first mortgage in as soon two weeks. By the end of the second quarter of 2010, they expect to expand the home equity loan modifications to customers who do not have a Wells Fargo first mortgage.

Home Equity Loan Credit Trends

Wells Fargo's Chief Financial Officer Howard Atkins stated that currently Wells Fargo's $125 billion home equity loan portfolio "demonstrated some positive credit trends in the first quarter." The 60 day delinquency rate is down to only 3.4% from 3.58% in the fourth quarter 2009. Home equity loans that are underwater, with a loan-to-value ratio exceeding 100%, are currently only 5.2% delinquent. Atkins said, "The vast majority of customers with negative equity continue to make their payments."

Wells Reaches Out to Customers

In addition to calling and mailing its customers, Wells Fargo has done a number of face to face events across the country in an effort to reach home equity loan customers struggling to make their payments. Wells Fargo added 2,000 employees to help in the home equity loan division. More than 180,000 customers have been assisted so far through various programs, including modification.

Wells Fargo home equity loan customers who do not have a Wells Fargo first mortgage but need to modify should contact their first mortgage loan servicer to determine if they are eligible under HAMP.

A Stable Housing Market

Modifying home equity loans is one important step to stabilizing the housing market. Most economists have said that a permanent recovery in the economy is crucially linked to stable housing. Recent home sales are up as well as some areas of new construction. Mortgage rates are still low and the Federal Reserve has said that interest rates in general should remain low for an extended period. Little by little, housing seems to be on the mend.

Find a new home equity loan: talk to a mortgage loan specialist now.

 

About Author:

Renee Morgan has been a loan officer for over eighteen years. She is also a freelance writer and guest expert for radio and TV.