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LOS ANGELES/ATLANTA (Jan 26): Wells Fargo & Co on Wednesday announced a pilot programme to stimulate home buying in Los Angeles and Atlanta, which were drubbed by the US financial crisis.
The fourth-largest US bank and largest US mortgage originator said it would donate US$23 million (RM69.96 million) toward downpayment assistance programmes this year and plans to make US$11.8 billion in home-purchase loans over the next five years in the two cities.
"We are not going to solve the housing crisis alone, but we think this is an opportunity to take a leadership position," said Jon Campbell, Wells Fargo head of social responsibility.
Wells Fargo said that next month it would also hold events such as tours of homes for sale in Los Angeles and Atlanta.
The programme aims to show that financing is available for home buyers at a time of low prices and excess inventory, Campbell said.
He said the lending goal is based on past originations in the two cities. The downpayment assistance will be made available through NeighborWorks America, a nonprofit organisation. Borrowers do not have to use Wells Fargo for their loans to receive the assistance.
Wells Fargo is one of the lenders in negotiations with state and federal officials to settle an investigation of foreclosure-related abuses. Campbell said the bank remains focused on helping homeowners stay in their homes.
Wells Fargo originated US$357 billion in residential real estate loans in 2011, down from US$386 billion in 2010. — Reuters
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