Wells Fargo to Offer Low-Down-Payment Mortgages Without FHA Backing

Wall Street Journal, May 26, 2016–Light, Joe; Andriotis, Annamaira

Wells Fargo & Co. is rolling out a new mortgage for borrowers making minimal down payments, an offering that could allow the bank to step back significantly from a controversial Federal Housing Administration program. “There’s clearly a disincentive to use the FHA for first-time home buyers in the way it’s been done in the past,” said David Stevens, CEO of the Mortgage Bankers Association.