Any concern?

RaceBannon · July 2021

http://twitter.com/CNBC/status/1413144842788478976?s=20

I bank with Chase so this doesn't effect me but it seems to be a red flag for the Wells Fargo brand that has taken a lot of hits

In 08 I had a line of credit on our house with Wa Mu. One day after Chase took over the line of credit was gone. No warning just gone.

Also noting on my RE hobby that prices seem to have topped and reductions are becoming more common. Not a crash don't twist. Just price reductions and hair cuts on sold properties

greenblood · July 2021

Apologize for the stupid question. But does this include HELOCs?

RaceBannon · July 2021

greenblood said:
Apologize for the stupid question. But does this include HELOCs?

Doesn't address it directly so I'd say no. But you need some sort of collateral to get that line of credit don't you? For most folks that's a house

It's an important distinction though

TheRoarOfTheCrowd · July 2021

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].

RaceBannon · July 2021

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].

That got taken away in 08 from the company I worked for. Vital for a construction company. Put a real squeeze on things.

TheRoarOfTheCrowd · July 2021

And yah, have been actively following real estate in our area and about 3 weeks ago my in box notices shifted to the beginnings of and now a steady stream of increasing numbers of price reductions from the active listings notice i get daily ~ a definite reversal trend which I think is significant.

We are in the rural Sonoma Valley now which had been the go to destination for San Francisco bay area folks that had wanted to get out of the urban environment during covid and the decentralization move that was triggered by those seminal events, so i think the shift is meaningful.

The trends are interesting as a prelude to a rebalancing of liquidity in real estate and the capital markets as a whole as the dreaded evolution of the end of FED purchasing of corporate and government bonds materializes in the near future.

ntxduck · July 2021

RaceBannon said:
http://twitter.com/CNBC/status/1413144842788478976?s=20

I bank with Chase so this doesn't effect me but it seems to be a red flag for the Wells Fargo brand that has taken a lot of hits

In 08 I had a line of credit on our house with Wa Mu. One day after Chase took over the line of credit was gone. No warning just gone.

Also noting on my RE hobby that prices seem to have topped and reductions are becoming more common. Not a crash don't twist. Just price reductions and hair cuts on sold properties

No. Not unless chase etc follow suit. Article makes it seem like it’s more Wells Fargo incompetence than anything

RaceBannon · July 2021

ntxduck said:

RaceBannon said:
http://twitter.com/CNBC/status/1413144842788478976?s=20

I bank with Chase so this doesn't effect me but it seems to be a red flag for the Wells Fargo brand that has taken a lot of hits

In 08 I had a line of credit on our house with Wa Mu. One day after Chase took over the line of credit was gone. No warning just gone.

Also noting on my RE hobby that prices seem to have topped and reductions are becoming more common. Not a crash don't twist. Just price reductions and hair cuts on sold properties
No. Not unless chase etc follow suit. Article makes it seem like it’s more Wells Fargo incompetence than anything

And that's easy to believe

I bank with Chase because they own the government. Safer that way

FireCohen · July 2021

ntxduck said:

RaceBannon said:
http://twitter.com/CNBC/status/1413144842788478976?s=20

I bank with Chase so this doesn't effect me but it seems to be a red flag for the Wells Fargo brand that has taken a lot of hits

In 08 I had a line of credit on our house with Wa Mu. One day after Chase took over the line of credit was gone. No warning just gone.

Also noting on my RE hobby that prices seem to have topped and reductions are becoming more common. Not a crash don't twist. Just price reductions and hair cuts on sold properties
No. Not unless chase etc follow suit. Article makes it seem like it’s more Wells Fargo incompetence than anything

Wells was one of the few banks coming out the 08 nonsense not looking like an idiot. Then they got aggressive and got themselves into trouble with regulators. I think they getting their ballz squeezed and need the capital to free up. If boa and chase do the same, we are in for some ruff fucking prison style

HoustonHusky · July 2021

Wells Fargo are a corrupt bunch of Jackasses that got away with lots of criminal activities because Buffet ran cover for them.

I think he’s out now, so they must be running from some jackass decisions they previously made.

RoadDawg55 · July 2021

DawgsCanDance said:
And yah, have been actively following real estate in our area and about 3 weeks ago my in box notices shifted to the beginnings of and now a steady stream of increasing numbers of price reductions from the active listings notice i get daily ~ a definite reversal trend which I think is significant.

We are in the rural Sonoma Valley now which had been the go to destination for San Francisco bay area folks that had wanted to get out of the urban environment during covid and the decentralization move that was triggered by those seminal events, so i think the shift is meaningful.

The trends are interesting as a prelude to a rebalancing of liquidity in real estate and the capital markets as a whole as the dreaded evolution of the end of FED purchasing of corporate and government bonds materializes in the near future.

Is that because of too much inventory?

TheRoarOfTheCrowd · July 2021

@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.

Fenderbender123 · July 2021

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.

PurpleThrobber · July 2021

Fuck Wells Fargo.

That is all.

louism2wash · July 2021

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.

greenblood · July 2021

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.

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 · August 2021

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

Kaepsknee · August 2021

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].

That Baboon payment is gonna be special.

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