From a plugged-in reader:
Just got a letter and a call from Wells Fargo offering a 1/2 point reduction in our 30 year fixed jumbo-conforming loan ($720K) through October 29th. Our rate would go from 6.375 to 5.875 at no cost to us – no points, no fees, no nothing. Seems odd to me and I can’t figure out why or how Wells Fargo is offering this.
Our cynical side calls into question the great recourse versus non-recourse debate for refi’s in California. Our less cynical side wonders if they’ve held the paper, you’re performing, and they don’t want to take the risk you’ll walk away.
And our wisdom is to let others chime in.
UPDATE: From a plugged-in Wells Fargo Loan officer:
Sorry to say folks that this offer is being made to only a very very few select loans on Wells Fargo’s books. The reason is that there is some reason in the loan file that makes these particular loans unable to be sold. This can be for such reasons as a missing signature on a loan document, or some other clerical type issue.
The fix is to offer these folks an offer that really is too good to be true, but is. Talk about bank error in your favor! Especially since current rates for the same loan today are over 6.5% with the client paying all the closing costs.
So if you’ve gotten a phone call or a letter, consider yourself one of the lucky ones and grab it! If you haven’t received a letter or call, don’t bother trying as this program cannot be offered to you.
And props to a plugged-in “diemos” for being pretty close.