Any concern?
Comments
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@RoadDawg55
No, up until now the +wave from city folk wanting to move here has created a true shortage... I have looked for a year for a cool place to buy and just now found one finally... there is no glut here, its just a shortage of new buyers even at historic and i mean historic interest rate lows. -
Wells Fargo is temporarily restricted from growing their balance sheet by the fed. There are other products that make more money for banks, so it makes sense to nix the personal lines of credit if they can expand their offerings of more profitable and possibly more important products. Either way, the bank is going to have to say "no more" to certain customers until the restriction is lifted. There is really nothing they can do to avoid these kinds of decisions until then.
As far as outlook goes, this move might actually be indicative that the bank is healthy, since they are looking for ways to make room for growth. Just a thought. I'm not an industry or stock expert. -
Fuck Wells Fargo.
That is all.
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I'm attempting to buy a house in Seattle and I agree with your assessment that price reductions are happening. 1-3 months ago everything was selling for at least 20% over asking. Now shit is sitting on the market a little longer and asking prices seem to be coming down a bit. Seems like it will probably be short term to me but the initial post-covid pop in housing, at least in Seattle, seems to have calmed for the time being.
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This is also why they were limited with the PPP rollout. Those $5 monthly account fees don't seem worth it now, after the large fine, bad press, and now restrictions that are causing them to hemorrhage clients.Fenderbender123 said:Wells Fargo is temporarily restricted from growing their balance sheet by the fed. There are other products that make more money for banks, so it makes sense to nix the personal lines of credit if they can expand their offerings of more profitable and possibly more important products. Either way, the bank is going to have to say "no more" to certain customers until the restriction is lifted. There is really nothing they can do to avoid these kinds of decisions until then.
As far as outlook goes, this move might actually be indicative that the bank is healthy, since they are looking for ways to make room for growth. Just a thought. I'm not an industry or stock expert. -
Looks like they changed their mind and are letting customers keep their personal LOC if they already have them. I didn't know this, but apparently they had already stopped taking applications for new ones a year ago.
https://finance.yahoo.com/news/wells-fargo-abandons-plan-discontinue-201951751.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAEJ4hkaDfq5TDqKVtdCE1GCFluJcMExdxrHLadZtTlNRCBi-rvpxVZ0rPtCUgJKFH0GW4k2mabXedGRq4rWxrHKBF7whZBffqhOIzTmd78VmQaZRJebXt1f_gVbCZ9eDDraWo29Lb_ZQmv_kzFegzqZzn2wsI13kEH3jHI6OIM4c -
That Baboon payment is gonna be special.DawgsCanDance said:Yah, I woke up and saw that headline and went oh, oh... the first sign of line of credits disappearing [*poof] is a seminal event often times of the beginning of the end of easy money and the liquidity of real estate. Its like being suddenly senior, boom.
Other ramifications and twists are related lending programs like large scale commercial construction projects, business lines of credit and really any non-standard loan programs that twisted sister bank officers dream up while the going is good. In my own case, I'm just now trying to lock and get funded [should hear tomorrow, fingers crossed] on a non-standard 2.3% interest only loan at 1.4 million with a 10 year lock ~ this kind of thing in history has been super rare because it winds up being a non-saleable portfolio loan and is the definition of a super frothy easy money environment [can't believe that it is ever offered, especially at that kind of rate].
