Since last year, Wells Fargo & Co has been treating workers like disposable paper towels. They have cut 7,000 jobs, including another 700 just last week, from their home loan division, that’s a cut of nearly 12%. This is bad news for the country’s largest residential loan company.
The trend of large mortgage lending companies cleaning house is nothing new as many companies have been doing it for a while now. When the mortgage crisis first hit a few years ago, large banks hired tons of workers to help with the rash of foreclosures. Now that the number of foreclosures is down dramatically and the housing market is getting back to normal, banks have no need for all the extra workers. This is a good sign for those looking to sell or buy a home as it signals that the housing market is stronger than before.
Unless you’ve got a bag full of cash underneath your mattress, purchasing a home in Delray Beach means first obtaining a mortgage loan. For plenty of prospective buyers, this the largest debt they will take on in their life. A mortgage is a way for a person to pay off a home using monthly installments, generally over a period of 30 years, rather than having to come up with hundreds of thousands in cash right away. The home is a form of collateral; should you not make the payments, the lending company takes the home.
Lenders can be concerned with borrows who offer less than 20% of the house’s value in a down payment and can add extra premiums which must be paid along with principle and interest. This protects the lender should a borrower default on their mortgage. The government plays a large role in the home loan industry in a regulatory capacity through legislation aimed to protect lenders and borrowers.
Ace Mortgage Loan Corporation provides quality mortgage services to the people of Broward and Palm Beach Counties. Those looking to buy a home in South Florida should secure a loan from a reliable broker like Ace Mortgage Loan Corporation.