One to Wells Fargo financing officer explained their own part regarding company within this trend:
Whether or not home financing is new otherwise a home mortgage refinance loan, loan originators trying return could take action very successfully by steering consumers towards the higher-costs issues, aside from their credit history or credit rating.
Once i had the fresh guidelines [out of primary loan officials], it was my personal occupations to figure out how to get new consumer towards an effective subprime loan. We knew that many of the fresh new recommendations I obtained you will definitely qualify to have a prime mortgage
Just after financing was referred to a good subprime mortgage officer, there can be no chance for the administrator making a prime loan. The brand new organizational design of lending procedures served since a one-way ratchet pushing people for the more costly fund. Read more
