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

Economic Decisions Await President-Elect Barack Obama

Even before the inauguration, Obama and his administration are dealing with issues such as a weakened consumer spending, fluctuating credit markets, foreclosures and rising consumer debt.

Treasury Secretary Henry Paulson indicated he wants to involve the incoming administration in a major decision prior to January 2009, and a transition team has been defined. One question is whether a new stimulus package will be proposed. It remains to be seen what will happen in the coming months.

New Customer Disclosure Rules Introduced

On Nov. 12, HUD announced new requirements under the Real Estate Settlement Procedures Act (RESPA) that help consumers better understand the terms of their loans, including but not limited to:
• improved, easy-to-read upfront disclosures for consumers
• a new page on the HUD-1 Settlement Statement allowing consumers to compare final closing costs with the Good Faith Estimate (GFE) disclosure, and
• a new reference to help borrowers compare their GFE with their HUD-1 Settlement Statement so each designated line on the final HUD-1 will now include a reference to the relevant line from the GFE.

A comprehensive review of the changes is available at www.hud.gov. The new, standardized GFE and revised HUD-1 will be required beginning Jan. 1, 2010.

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.