Wells Fargo to close subprime wholesale lending business

[Roland99]

Source: MarketWatch

Wells Fargo Home Mortgage said Thursday it will close its nonprime wholesale lending business, which processes and funds subprime loans for third-party mortgage brokers. In 2006, the business represented 1.6% of Wells Fargo's total residential mortgage loan volume of $397.6 billion. "Wells Fargo will continue to offer nonprime loans in channels where the company has direct relationships with consumers" said Cara Heiden, Wells Fargo Home Mortgage division president, in a statement. Heiden added that "the decision to close our nonprime wholesale lending business has no effect on Wells Fargo's robust prime lending business." As part of the move, Wells Fargo will close its nonprime wholesale operations in Baton Rouge, La., and Des Moines, Iowa. In Baton Rouge, 170 positions will be affected, while in Des Moines, 67 employees will be affected. Shares of San Francisco-based Wells Fargo fell 58 cents to $33.99 in Thursday afternoon trade.

Read more: http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B5EE3F67D%2D4AEE%2D47B5%2DB45B%2D2A6D2AC6EF7D%7D&siteid=mktw

[lovuian]

1. Subprime Loan Business triggers the upcoming recession

the Party is over

[Roland99]

2. Dow down -315 right now, too.

[silvershadow]

7. or the coming depression. eom.

[sarcasmo]

3. If Fargo closes their subprime lending who then takes on the loan?

Some other sucker lending company?

[mountainvue]

4. I'm sure Wells will continue to service their sub prime loans

if that's what you're asking. There are still reputable sub prime lenders out there and beleive me, getting a sub prime loan to close these days is no easy thing.

[trogdor]

6. Naah. They'll sell 'em.

Borrowers will wax nostalgic for the days when Wells Fargo owned their paper, if you know what I mean.

[sarcasmo]

10. That's what I thought would happen. Your sub prime loan gets sold to some sub lender.

[Liberal Lassie]

8. Don't even THINK about poor little ole' Wells Fargo!!!

I had a mortgage with WF, actually, I still do but they own this loan shark agency called ASC (AMERICA'S SERVICING COMPANY) who actually make Kenneth Lay, Cheney, Ashcroft and even John DeLay look like choir boys. If you type their name in a search engine and add "complaints" you will find that literally THOUSANDS of people are being screwed royal by these people in oh, so many ways. When we bought this house the bottom line bill to pay was $110,000. We have lived in the house and made payments for 7 years and now our loan bill is $114,000 after 7 years of paying! These people don't post payments for 3 to 6 weeks after they receive them and they are making millions charging late fees on things that aren't late and destroying credit reports.

Wells Fargo will be just FINE.

[sarcasmo]

12. I figured Fargo would be fine, it's the poor suckers with the sub prime loan who will get

the screw job.

[NMDemDist2]

5. "no effect on Wells Fargo's robust prime lending business."

ROBUST??!!?!?!?!?? :spray:


:rofl:

[madrchsod]

9. largest percentage of defaults in my area

are wells fargo mortgages, the next largest percentage are banks/finacial companys that bought balloons or high risk borrowers

[fed-up]

11. my neighbor sells Wells Fargo repossessed properties and only gets 2% instead of usual 3% nt