Well Fargo Exits Mortgage Joint Ventures, Will Shed 300 Jobs

Well Fargo Exits Mortgage Joint Ventures, Will Shed 300 Jobs

07/26/2013 BY: ESTHER CHO

 

Wells Fargo Ventures, LLC, a subsidiary of  Wells Fargo & Co., will exit from its eight mortgage joint ventures in mortgage lending due to “the current regulatory and market environment,” the company announced Thursday.

More specifically, Wells Fargo stated “state and federal oversight have increased the complexity and difficulty of operating mortgage joint ventures.”

The wind down, which will take place over the next 12 to 18 months, will impact about 300 mortgage workers.

“This decision reflects our response to new operating realities and our commitment to continuously improving our business model,” said Franklin Codel, EVP and head of mortgage production, in a statement Thursday. “As a leader in home lending, we want to ensure we’re always in the best position to help Americans achieve the dream of homeownership.”

The company also stated joint venture customers with a pending loan application will continue to have their applications processed by the joint venture. Wells Fargo Ventures is headquartered in Des Moines, Iowa.

 

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