Wells Fargo Lowering Credit Score Requirements for FHA Loans

This week, Wells Fargo announced that it is lowering its credit requirements for loans backed by the Federal Housing Administration (“FHA”).

Prior to this change in policy, the minimum FICO credit score that Wells Fargo required for an FHA loan was 640. Effective February 2014, Wells Fargo will accept FICO scores as low as 600.  This will allow the company to offer mortgage credit to a broader base of consumers.

In 2013, Wells Fargo was among several other large banks to reach a major settlement with Fannie Mae and Freddie Mac over bad loans. In December 2013, Wells Fargo agreed to pay Fannie Mae and Freddie Mac $591 million to resolve “repurchase claims,” which related to the faulty mortgages that Wells Fargo sold to Freddie Mac in the years preceding 2009, totaling $869 million. Reaching this settlement has allowed the company to spring forward.  In fact, in its most recent earnings release, the lender posted record earnings!

Is this a sign that the housing market is finally recovering?

If you have any questions about this article or any other Real Estate or Title Services issue, please contact us at (812) 426-1231. 

COMMUNITY COMMENT: Definition of ‘equality’ evolved over time

Each year as part of the local and national Law Day celebration, the Editorial Board of the Evansville Bar Association writes articles for publication in the Evansville Courier & Press.  The theme of this year’s celebration is “Realizing the Dream: Equality for All.” This article is the first of two articles written by the Editorial Board. Bowers Harrison partner, Mark Miller is a member of the Editorial Board.

Employment Law Update Seminar – March 21, 2013 in Evansville

On March 21, 2013, Bowers Harrison, LLP partner, Mark Miller, will present an update on labor and employment law.  This seminar, produced by Lorman Education Services, is geared towards human resource managers, operations managers, vice presidents, presidents, accountants, controllers, and other supervisors or managers.  The presentation will cover a range of topics relevant at all stages of the employer-employee relationship, including hiring practices and procedures, creating employee agreements and handbooks, conducting a proper and thorough harassment investigation, and terminating the employment relationship.

These practices and policies – when properly implemented – can help employers avoid compliance confusion and expensive litigation and are especially relevant and important in today’s economic climate, in which employee claims and lawsuits can cripple business growth.

The seminar will begin at 8:30 a.m. this Thursday, March 21, 2013.  Registration is open to the public at http://www.lorman.com/seminars/390295