Wells Fargo loan stance toughens

Wells Fargo & Co. is seeking to limit its exposure to mortgages that typically don’t require borrowers to fully document their incomes.

The bank told mortgage brokers Tuesday that it was making “day-to-day decisions” whether to acquire from them so-called alt-A mortgages. Wells Fargo cited a growing reluctance of investors to buy such loans from the bank.

Because they aren’t subject to the usual income verification process, some alt-A borrowers are believed to have grossly exaggerated their pay.

Last week, Wells Fargo stopped acquiring sub-prime loans from brokers.