US Bank's SBA Loans Increase by 38% in 2006

Minneapolis, Minnesota
November 21, 2006
BusinessWire


U.S. Bank increased its SBA loan total by a record 38 percent for fiscal 2006, according to Small Business Administration (SBA) information.


Through its SBA Division, U.S. Bank provided a record 4,703 SBA guaranteed loans to small businesses nationwide.


It also saw a three percent increase in dollar volume over the previous year, according to the SBA. Both totals are U.S. Bank records. Nationally, U.S. Bank ranked second among SBA bank lenders and third overall among both bank and non-bank SBA lenders in terms of loan dollar volume, according to the SBA. U.S. Bank ranked sixth nationally in overall loan volume.
"Again in 2006, our record success is primarily due to the attractiveness of our easy-to-access SBAExpress loans," said David Bartram, president of U.S. Bank's SBA Division.


"Additionally, our Fees Paid offer has become a key advantage in our SBA real estate loan program and thousands of our borrowers took advantage of it this past year." U.S. Bank ranks in the top five in number of loans in 18 of the 21 SBA districts where it operates.


It ranks first in Kansas City, St. Louis and Portland; second in Colorado, Minnesota, Seattle/Spokane and Wisconsin SBA Districts. Additionally, U.S. Bank ranks third in Cleveland, Columbus/Cincinnati, Kentucky, Nebraska, Nevada, Sacramento and Tennessee districts. In terms of loan dollar volume, U.S. Bank ranks in the top five in 16 of the 21 SBA districts where it operates.


It ranks first in Kansas City, St. Louis, Los Angeles, Portland and San Francisco; second in Colorado, Minnesota, Tennessee, Nevada and Seattle/Spokane districts. Through SBA Division, U.S. Bank operates 24 specially designated SBA Business Centers nationwide. U.S. Bank is part of U.S. Bancorp (NYSE:USB).


With assets of $217 billion, U.S. Bancorp is the 6th largest financial holding company in the United States. The company operates 2,467 banking offices and 4,943 ATMs, and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payment services products to consumers, businesses and institutions.


"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding U.S. Bancorp's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties.


For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.

Wells Fargo is the Nation's Top Small Business Lender

San Francisco, California
November 14, 2006

Wells Fargo Generates 1 In 5 Small Business Lending Dollars In U.S.

Wells Fargo extended $18 billion in loans under $100,000 to small business owners in 2005, remains nation’s #1 small business lender according to latest government data

Small business loan growth remains strong according to the latest, most comprehensive government data. In 2005, Wells Fargo increased its year-over-year small business lending by over 30%, extending $18 billion to small business owners nationwide (in loans under $100,000).

Total small business growth for loans under $100,000 increased 4%, from $93 billion to just over $96 billion, according to the 2005 Community Reinvestment Act (CRA) data. CRA data provides the industry’s most comprehensive set of small business lending figures. With 95 percent of all small businesses generating less than $2 million in annual revenues, tracking loans under $100,000 is an important measurement of how financial institutions are meeting the capital needs of small business owners.

For the fourth year in a row, Wells Fargo leads this category, extending over 680,000 loans nationwide with an average loan size of just over $26,000. “These lending results demonstrate our strong commitment to small businesses throughout the United States,” said Marc Bernstein, EVP and head of small business lending for Wells Fargo.

“Our loans to small businesses grew more than 30% last year - over seven times the growth for all lending nationwide. Perhaps the most exciting result, however, is that we’ve been able to help over half a million small businesses with their capital needs in 2005.” Wells Fargo was also the #1 lender to small businesses in Low and Moderate Income neighborhoods (loans under $100,000), with over 137,000 loans totaling more than $3.7 billion dollars with an average loan size of approximately $27,000. “Our bankers talk to thousands of small business owners every day, and access to capital is always top of mind when discussing their key business priorities,” said Rebecca Macieira-Kaufmann, EVP and head of Wells Fargo’s small business segment.

“These results demonstrate the deep connections we’re building with our customers – we are honored they trust Wells Fargo to help them build and grow their businesses.” There are approximately 25 million small businesses in the U.S., representing over 99% of U.S. employers and approximately half of the U.S. GDP ($5 trillion).

Wells Fargo ranked #1 for loans under $100,000 in 19 states: Alaska, Arizona, California, Colorado, Idaho, Indiana, Iowa, Minnesota, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oregon, South Dakota, Texas, Utah, Washington, and Wyoming. Wells Fargo & Company is a diversified financial services company with $483 billion in assets, providing banking, insurance, investments, mortgage and consumer finance to more than 23 million customers from more than 6,100 stores and the internet (wellsfargo.com) across North America and internationally.

Wells Fargo Bank, N.A. has the highest possible credit rating, "Aaa," from Moody's Investors Service and the highest credit rating given to a U.S. bank, "AA+," from Standard & Poor's Ratings Services. Providing financial products and services to more than one million businesses with annual sales up to $20 million in all 50 states, Puerto Rico and Canada, Wells Fargo is the #1 lender to small businesses in the United States in total dollar volume according to the most recent CRA data (2005).

Wells Fargo is an SBA Preferred Lender in 28 states, and originated 4,937 loans for $578 million in 2006. Its targeted business services programs provide outreach and education to women, African American, Latino, and Asian business owners about financial services.

Since 1995, Wells Fargo has loaned more than $33 billion to women and diverse business owners.

Weekly Mortgage Applications Survey From The Mortgage Bankers Association

WASHINGTON, D.C.
November 8, 2006


The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending November 3.


The Market Composite Index, a measure of mortgage loan application volume, was 620.9, an increase of 8.8 percent on a seasonally adjusted basis from 570.8 one week earlier.


On an unadjusted basis, the Index increased 8 percent compared with the previous week and was down 5 percent compared with the same week one year earlier. The seasonally-adjusted Refinance Index increased by 11 percent to 1897.9 from 1709.2 the previous week and the Purchase Index increased by 7.1 percent to 402.2 from 375.6 one week earlier.


Other seasonally adjusted index activity includes the Conventional Index, which increased by 9.1 percent to 921.1 from 844.2 the previous week, and the Government Index, which increased 4.8 percent to 120.4 from 114.9 the previous week.


The four week moving average for the seasonally-adjusted Market Index is up 0.9 percent to 591.5 from 586.1. The four week moving average is up 1.2 percent to 386.2 from 381.5 for the Purchase Index, while this average is up 0.6 percent to 1788.9 from 1778.7 for the Refinance Index. The refinance share of mortgage activity increased to 46.3 percent of total applications from 45 percent the previous week.


The adjustable-rate mortgage (ARM) share of activity increased to 26.4 percent of total applications from 25.9 percent the previous week. The average contract interest rate for 30-year fixed-rate mortgages remained unchanged at 6.24 percent, with points decreasing to 1.08 from 1.09 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.


The average contract interest rate for 15-year fixed-rate mortgages increased to 5.96 percent from 5.94 percent, with points decreasing to 0.97 from 1.03 (including the origination fee) for 80 percent LTV loans. The average contract interest rate for one-year ARMs decreased to 5.89 percent from 5.93 percent, with points decreasing to 0.8 from 0.84 (including the origination fee) for 80 percent LTV loans.


The survey covers approximately 50 percent of all U.S. retail residential mortgage originations, and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts. Base period and value for all indexes is March 16, 1990=100.


The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 500,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation’s residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans.


MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 3,000 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending field.

State Mortgage Regulators Notified of Mortgage Planning Abuse

Market Wire
Atlanta, Georgia
11/2/2006


"The Book On Mortgage Planning" Is Made Available to Promote Professional Mortgage Planning and Fill Gaps in Financial Planning Says The Mortgage Institute for Financial Services Professionals.


Today, the Mortgage Institute for Financial Services Professionals, Inc. (www.MIFSP.org) notified mortgage regulators in all fifty states of its concerns about the growth of mortgage-investment marketing schemes it refers to as "tag team mortgage planning."


In a letter to state regulators, MIFSP expressed concern that many financial representatives and mortgage originators may inappropriately recommend that homeowners pull equity from their homes, and use it to make risky investments without any determination of the suitability of this kind of mortgage-investment model.


According to Leon Morris RMP, RFC, CLU, ChFC, FFSI, Executive Director of MIFSP, there could be tens of thousands of people in the mortgage and financial planning industry operating under this kind of tag team business model referring to it as "mortgage planning."


"It's a real problem when this kind of sales pitch is made to folks who can't afford to bet the ranch and it's a sad day for financial planning if we've reached the point where a financial advisor's desire to sell products is so overwhelming he or she doesn't care that the consumer has to borrow money to buy it. There are over 100 million households in this country and the average homeowner with a mortgage spends 30% or more of their income on a residential mortgage. Therefore, all financial planners, mortgage originators, and others who provide consumers financial advice should at least read a book on mortgage planning if not take a course on the subject," says Morris. Morris says that's why he has written a book entitled "The Book On Mortgage Planning" that explains the basics of mortgage planning and promotes a uniform mortgage planning process that he believes will enable mortgage planning to grow and flourish as a much needed financial specialty.


Morris has also written a parallel book for consumers. "I believe mortgage planning is essential to being able to truly justify the suitability of other financial recommendations because of the magnitude of the expense and because it's tied to the largest physical asset most people have. Rather than treating the mortgage like it's the elephant in the room, walking around it because you don't know what to do with it, the mortgage should be planned for just like any other aspect of a person's financial future," says Morris. With over a 100 million households, Morris says mortgage planning can easily become a $50 billion a year industry if each household utilized the services of a mortgage planner once a year at a cost of just $500.


A national registry is being set up through the National Association of Independent Mortgage Service Providers, a division of MIFSP, whereby mortgage and financial services professionals who certify that they have read "The Book on Mortgage Planning" use the hallmark Qualified Mortgage Planner™ professional and become listees in the registry by also agreeing to adhere to a specified professional code of ethics and standards for QMP™ professionals that includes providing certain disclosures to the consumer from the outset. Access to the registry will be free of charge to consumers.


"MIFSP offers an educational program in Mortgage Based™ Financial Planning that leads to two designations, Residential Mortgage Planner® professional and Associate, Residential Mortgage Planner™ professional. However, for starters the QMP™ registry will give consumers a way to confirm those who have expanded their knowledge through reading a book on mortgage planning and who are willing to live up to professional standards and a code of ethics in practicing it," says Morris. MIFSP told state regulators that consumers are already being harmed by unsuitable mortgage-investment recommendations as evidenced by a March 2004 press release issued by the National Association of Securities Dealers (NASD) in which it announced it had charged several securities brokers with suitability violations for making unsuitable recommendations to customers, urging them to purchase investments using proceeds obtained from cash-out home mortgage refinancing.


Morris says he agrees with the statement made by Mary Schapiro, NASD's current Chairman & CEO, as quoted in the NASD March 2004 press release, when she said all kinds of regulatory red flags should go up whenever a securities firm or a broker recommends an investor mortgage his home to buy securities, but Morris says it's not just a concern for the consumer as an investor, it's a concern for the consumer as a homeowner and mortgagor as well. "Back in 2004, Ms. Schapiro said the NASD would always ask whether it's appropriate to recommend that a homeowner risk their home to seek investment returns, and we at MIFSP are urging all state mortgage regulators to ask the same question before it's too late," says Morris. MIFSP has urged all states to move forward with initiatives to implement requirements to provide consumers clear and adequate disclosure of the risks they're assuming and of any conflicts of interest the mortgage originator or investment adviser may have, along with requiring determination of suitability.


Morris says in order to better protect mortgagors and investors, there needs to be disclosure of the potential harm they may face when and if the investment-mortgage advice backfires. "With all the great things mortgage planning can do for so many millions of people and with the multi-billion dollar growth potential of this specialty, it isn't necessary to abuse it by being an equity predator," says Morris. The best advice Morris says he can give to those in the mortgage and financial services industry who may be part of a tag team mortgage scheme is the same warning they give for cigarette smoking: if you're not doing it, don't start and if you've started, stop.