Wells Fargo calls L.A. market ‘severely distressed’

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A quickie: Wells Fargo has designated Los Angeles County a ‘severely distressed’ housing market, which means tighter mortgage guidelines for L.A. borrowers, effective this week. From Biz Journals: ‘In a move that could have far-reaching ramifications for home buyers in the Golden State and elsewhere, Wells Fargo & Co. is tightening its mortgage lending guidelines in more than 200 markets across the country, including Los Angeles County, that it has labeled severely distressed or distressed.’

More: ‘In markets considered severely distressed, for example, it will not make a loan for more than 75 percent of the value of the home. Twenty counties in California, including Los Angeles County and Orange County, are on the severely distressed markets list.’

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Hat tips: Beth and Better Village