NEW YORK (TheStreet) -- Wells Fargo (WFC) shares are up 0.21% to $50.61 on Thursday after the bank announced a new home loan program called 'yourFirst Mortgage,' offering first-time buyers and others a new low-down-payment loan.
The company's new product has a minimum down payment of 3% for a fixed-rate conventional mortgage of up to $417,000. This applies to borrowers with credit scores as low as 620 on a scale of 300 to 850.
"There are a lot of conventional loan products with low down payment options, but the criteria are so complex that it creates barriers for many qualified borrowers," said Brad Blackwell, executive VP of Wells Fargo Home Lending. "With 'yourFirst Mortgage,' we wanted to provide access to credit and simplify the experience while maintaining responsible lending practices."
This offering could allow the lender to step back significantly from a controversial Federal Housing Administration (FHA) program, the Wall Street Journal reports. Essentially, its new program could replace around half of the bank's current FHA volume and boost market share.
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Separately, TheStreet Ratings team rates the stock as a "buy" with a rating score of B.
Wells Fargo's strengths such as its revenue growth, expanding profit margins and attractive valuation levels outweigh the fact that the company has had lackluster performance in the stock itself.
You can view the full analysis from the report here: WFC
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.