MORTGAGE UPDATE:

Lending update courtesy of MS&C Mortgage,
an affiliate of Wells Fargo

Market in Review: The Wells Fargo View

Earnings Results: Reading Between The Lines

Companies with strong past earnings performances may recently have reported mixed results. These results reflect the struggle some have faced in raising capital, the magnitude of subprime loans held in their portfolios or the overall credit risk some were willing to assume (see chart).

Consumers are more aware of the state of the financial market in general, and want a safe, sound and solid lender. A recent survey released by Synergistics Research Corporation, the leading provider of syndicated consumer and small business marketing research intelligence for the financial services industry, said borrowers look for stable and reliable financial services providers. Respondents also said the ability to lock in rates and guarantee that loans will close as scheduled are important factors when selecting a provider.

The Wells Fargo View: Wells Fargo is committed to responsible lending and servicing in all communities directly to consumers and through brokers and correspondents. Our PriorityBuyer® program enables customers to line up financing before putting an offer on a home. With our money-backed Wells Fargo Closing GuaranteeSM program we will close our customers’ loans on or before the closing date stated in the original purchase contract or they will receive a check equal to the first month’s principal-and-interest payment.*

Take A Fresh Look At What FHA Has To Offer

Federal Housing Administration loans are insured by the U.S. government and funded by a lender. FHA loans may provide housing opportunities to low- and moderate-income families, first-time home buyers and consumers who may have less-than-perfect credit. Originally created during the Great Depression, FHA loans are again becoming popular for qualified consumers.

Below are some common FHA misconceptions:

• FHA loans have too much paperwork: Recent changes in the FHA program have reduced the required paperwork.

• The seller has to pay fees: Changes to the program enable borrowers to pay certain additional loan costs as long as they are reasonable and customary. Borrowers can use alternate funding sources such as Downpayment Assistance Program monies or a family gift for the down payment and other fees.

• It’s a higher cost loan due to the government guarantee: Although mortgage insurance is required, these rates are comparable to conventional loans.

The Wells Fargo View: WFHM has long been a leading FHA/VA lender. As was recently announced in a live nationwide simulcast hosted by Wells Fargo, home mortgage consultants are reacquainting real estate professionals across the country about FHA loans as a reliable option for qualified low- and moderate-income borrowers.

*Available on all qualified purchase transactions. Other terms and conditions apply. See a home mortgage consultant for details.

Wells Fargo & Company is a diversified financial services company with $575 billion in assets, providing banking, insurance, investments, mortgage and consumer finance to more than 23 million customers from almost 6,000 stores and the internet (wellsfargo.com) across North America and elsewhere internationally. Wells Fargo Bank, N.A. is the only bank in the U.S., and one of two banks worldwide, to have the highest possible credit rating from both Moody's Investors Service, "AAA," and Standard & Poor's Ratings Services, "AAA." Information is accurate as of date of printing and subject to change without notice. Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. © 2008 Wells Fargo Bank, N.A. All rights reserved.