Wells Fargo Co., the nation’s largest home lender and issuer/servicer of GNMA loans, is telling its correspondents and brokers that it will only participate in the FHA’s new ‘Streamline’ refi program on loans its services.
One broker familiar with the matter said he first heard about Wells’ decision last week.
As reported by National Mortgage News, FHA launched a new version of its ‘Streamline’ refi program on Monday, lowering its charges to lower levels: an upfront mortgage insurance premium of 1 basis point, and an annual premium of 55 bps.
To be eligible, borrowers must be current. Many lenders are ramping up to take advantage of the one-time lower charges, marketing the program to its current FHA client base.
Wells has a GNMA market share north of 30%.