any updates on predicted layoffs week of march 20? will home lending be significantly impacted?
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@1yxj+1loVQwEy You aren't kidding. 6%, 99% of the tools collecting that chunk ultimately the bare minimum. People just don't like to haggle directly. The main kicker is that NO "Real Estate Sales Agent" (or whatever you want to identify them as) has any fiduciary responsibility to their customer first. It goes their Broker, Themselves THEN their client regardless of what they say. Don't get me started on being a disclosed dual agent, absolute conflict of interest.
The difference is that in the past the executives wanted to BE in that business. Charlie wants the opposite, and he will slash and burn until there's nothing left that can't be automated or outsourced or sold or simply shut down. He really doesn't care what value mortgage has brought to our business over the years, he simply wants out.
“The "decision engines" DU and LP do not belong to WF. They are the decision engines that belong to Fannie Mae (DU Desktop Underwriter) and LP for Government Loans. I have worked at mortgage companies that only had underwriters for files that did not pass the engine. All files with approve and stips from the engine never went to an underwriter, straight from processor to close team”
LP is owned by Freddie not for government loans
@bcw+1loVQwEy that's exactly what the "high" producers are thinking, and they'll be wrong. They will be going to a model that doesn't need them. They know that if the market ever shifts back to a day when people are needed to pedal a loan, they can just rehire the next generation of people who can follow a process. I work with a private mortgage lender now who thinks he's immune. LOL. They can hire a monkey to provide the kind of value he thinks he provides. The same is going to be true for the RE industry. The consumer will discover there is no reason to hand out 6% of their sales profit.
The "decision engines" DU and LP do not belong to WF. They are the decision engines that belong to Fannie Mae (DU Desktop Underwriter) and LP for Government Loans. I have worked at mortgage companies that only had underwriters for files that did not pass the engine. All files with approve and stips from the engine never went to an underwriter, straight from processor to close team.
So much fear mongering…haha!!
I’ve been in underwriting for 15 years and every single group I have been in there is always one person who says WF is going to 100% underwriting automation soon. In 15 years, very little has ever changed… Give it a rest. 🥱
Hmm what about boots on the ground appraisers? They've been trying to do away with appraisers for decades with AVMs, hybrids, etc. Certified appraisers can't be reloaded as easily as processors with every ebb and flow of the cyclic mortgage biz
The next go around will be a nightmare with lenders being forced to rely on questionable valuations and then blaming the lack of appraisers "what were we supposed to do, not our fault that all of these loans are underwater, AGAIN!"
Doomed to happen again when you have non-mortgage people running your mortgage depart. Rots of Ruck!
The business is pursuing approval to UW in India. The systems and risk engine are not going away. WF will do less UW and that will be done primarily offshore. Doing less and at less cost.
No, they won’t replace CORE or the risk engine. In the minds of Scharf and Co, they can “de-risk” their mortgage business by making it smaller and doing less loans = less chance of being sued, less of a target on their back.
Ultimately, they probably intend on being a primarily centralized/online lender.
What will the folks that made Presidents Club in NYC and San Fran think about that?
The complexity is in risk engine rule complexity so unless they replace core and risk engine with off the shelf software then no risk is being removed.
their goal is 100% to replace all UWs with automated underwriting. They already started in Agency with using digitally verified income & assets. Now they are slowing expanding this into portfolio lending with the income teams and taking away income calc from retail underwriters. The writing is on the wall, its just a matter of time.
Monthly layoffs until Sep lol
What happens after SPRO?
I really hope not… we are busy with SPRO loans.
@1qcn That’s why it would be better to update your resume and look before a million ppl are also looking for a job. The other option is get the severance and do something during that time like school or open a business. You will figure it out!!
My job skills are rapidly becoming unimpressive and outdated right in front of my eyes.
Thanks in advance to everyone that lives in my state for when I go on assistance.
Does a bear s#!T in the woods?
@1pgd+1loVQwEy Cash buyers don't need a mortgage.
The open houses I went to are filled with buyers paying all cash
Where is housing crisis?
Are they laying off more HMCs/PMBs?
I’ve heard 5 digits across the enterprise, but yes Home Mortgage will get hit hard
Get with the program. Rates are up and going higher, mortgage is a bust, at least for the next year or two. It also doesn't help there's so much regulation. You do one wrong move and its billions in fines. Horrible business to be in.
I wouldn't be shocked if mortgage lost 80%+ of their people eventually. When Charles says "reduce risk" what he means is, downsize thousands of employees in the US. Mortgage will be very lean/mean, heavily automated, and centralized as soon as they can pull it off.
Yes.
There were several hundred bankers that closed maybe 1 loan in the past 12 months. Have to believe those folks are gonna be shown the door (as they should).
What are the TOP tier producers at WF thinking right now?? Are they thinking “wow nice they’re just gonna focus on my market and other large markets, this is great” just “business as usual” or are they thinking “oh sh-t, Charlie is eventually gonna transform mortgage into a giant centralized team…..why would they want to pay us $1M+ per year when centralized folks can do the same volume for a fraction of the cost!!”