Are buyers required to use The Metros preferred lender, Wells Fargo Home Mortgage, for financing?
No. Doing so would be a violation of Federal law outlined in the Real Estate Settlement Procedures Act (RESPA) established by the U.S. Department of Housing and Urban Development (HUD). However, as the preferred lender of The Metro, Wells Fargo Home Mortgage is preparing the Master Appraisal of the project so that mortgages can be underwritten by the bank. Given the size of The Metro and the fact that our sales will occur before the building is complete and occupied, any preferred lender assumes a large degree of risk in underwriting a buyers mortgage since the underlying equity or value of the project must be forecast rather than known as is the case with existing construction. This is why other lenders may state that they will be able to underwrite loans at The Metro prior to completion, but few if any will be able to perform since their own underwriting departments will not be willing to assume the risk of a new project. The result of this is almost invariably that the buyer is then
