Wells Fargo Banks Latest Chicanery
Much to our chagrin, Wells Fargo will not be releasing their official Q4 10Q until early March.
This gives Wells ample time to scuttle about, procure much needed capital to stay solvent and the insiders time to sell off options, before the truth comes out.
The Nattering One has been taking a stiff crop to this nag for awhile, here, here, here, here, and here.
Let it be known, that we DO like to ride a dead horse, HARD, especially one's that are so deserving, such as Wells Fargo's Express to insolvency.
A recap of the Wells REO property we have written on:
Offered by owner at $900K, NOD, Trustee Sale, REO...
Wells offers it at $705K; Nattering One makes offer, Wells counters at $670K, 10 days later, Wells drops to $649...
Nattering One bumps up 25K, Wells countersat $649K, the agent said that the "loss mitigator" which Wells REO dept is using would NEVER let the property go less than $650...
Alrighty then, 28 days later... Wells drops the price to $579K, the Nattering One is writing again, no bump, same price.
Our offers had a BofA approval letter... this time the Wells agent said Wells was very picky and would reject any offer that did not have a Wells preapproval letter.
Pretty smart considering NO ONE will pay what they ask and the price keeps dropping. We turned a deaf ear and sent the offer anyway.
So far, Wells is down $126K from initial asking and $330K from market peak asking.
On 09/24/07: Scott Anderson, senior economist at Wells Fargo:
"The Fed may be a little impotent here because what caused this housing crash was overpriced housing, not mortgages."
You would think Wells could take a clue from their own opinions. It gets better...
Mike Loughlin, Wells chief credit officer:
"Given the weakness in housing and the overall state of the U.S. economy, it is likely that net charge offs will be higher in 2008."
Well, we certainly know why firsthand. If you refuse to LET GO of the falling assets, I'm sure write offs will be higher, but maybe thats exactly what they want.
But thats not all you get, if you act now, it gets better... The number of Wells Fargo REO listings in California:
Sept 5th, roughly 3800.
Nov 27th 5380; UP 41% in just 2 months.
Dec 28th 5820, ANOTHER 10% increase.
Jan 30th 6560, ANOTHER 12% increase.
Since Sept 5th, just 5 months ago, a 73% increase.
6560 x California median sales price at market peak of 484K = $3.175 Billion in non performing California loans.
At this rate, we expect Wells California exposure to hit 10,000 foreclosures and $5 billion by May.
But wait, thats not all, it gets better...
On Jan 29th Wells filed a supplement for prospectus with Edgar.
Wells is selling $4.5 billion in notes to "raise cash and retire old debt", is someone running out of money? With all the above, does anyone wonder why?
We suspect that the actual 10Q filing around March 5th will hold some surprises, none of which will make Wells stockholders very happy.
This gives Wells ample time to scuttle about, procure much needed capital to stay solvent and the insiders time to sell off options, before the truth comes out.
The Nattering One has been taking a stiff crop to this nag for awhile, here, here, here, here, and here.
Let it be known, that we DO like to ride a dead horse, HARD, especially one's that are so deserving, such as Wells Fargo's Express to insolvency.
A recap of the Wells REO property we have written on:
Offered by owner at $900K, NOD, Trustee Sale, REO...
Wells offers it at $705K; Nattering One makes offer, Wells counters at $670K, 10 days later, Wells drops to $649...
Nattering One bumps up 25K, Wells countersat $649K, the agent said that the "loss mitigator" which Wells REO dept is using would NEVER let the property go less than $650...
Alrighty then, 28 days later... Wells drops the price to $579K, the Nattering One is writing again, no bump, same price.
Our offers had a BofA approval letter... this time the Wells agent said Wells was very picky and would reject any offer that did not have a Wells preapproval letter.
Pretty smart considering NO ONE will pay what they ask and the price keeps dropping. We turned a deaf ear and sent the offer anyway.
So far, Wells is down $126K from initial asking and $330K from market peak asking.
On 09/24/07: Scott Anderson, senior economist at Wells Fargo:
"The Fed may be a little impotent here because what caused this housing crash was overpriced housing, not mortgages."
You would think Wells could take a clue from their own opinions. It gets better...
Mike Loughlin, Wells chief credit officer:
"Given the weakness in housing and the overall state of the U.S. economy, it is likely that net charge offs will be higher in 2008."
Well, we certainly know why firsthand. If you refuse to LET GO of the falling assets, I'm sure write offs will be higher, but maybe thats exactly what they want.
But thats not all you get, if you act now, it gets better... The number of Wells Fargo REO listings in California:
Sept 5th, roughly 3800.
Nov 27th 5380; UP 41% in just 2 months.
Dec 28th 5820, ANOTHER 10% increase.
Jan 30th 6560, ANOTHER 12% increase.
Since Sept 5th, just 5 months ago, a 73% increase.
6560 x California median sales price at market peak of 484K = $3.175 Billion in non performing California loans.
At this rate, we expect Wells California exposure to hit 10,000 foreclosures and $5 billion by May.
But wait, thats not all, it gets better...
On Jan 29th Wells filed a supplement for prospectus with Edgar.
Wells is selling $4.5 billion in notes to "raise cash and retire old debt", is someone running out of money? With all the above, does anyone wonder why?
We suspect that the actual 10Q filing around March 5th will hold some surprises, none of which will make Wells stockholders very happy.
Comments