The bank says the move will eliminate more than 2,800 jobs nationwide, with existing mortgages being serviced by other parts of Wells Fargo
Los Angeles, CA – Wells Fargo Financial in Duluth will soon close, along with the division’s 600 locations across the country as Wells Fargo & Co. gets out of the subprime home mortgage business.
The branch, at 2220 Mountain Shadow Drive, is one of 13 outlets in Minnesota. Wisconsin has 15.
All will close by early September, eliminating more than 2,800 jobs. Another 1,000 positions probably will be eliminated during the next year, according to a company statement.
Like most of the branches around the country, the Duluth branch has about six employees.
“We’re working very closely with our community banking team members to reassign as many as possible,” said Diana Rodriguez, a Wells Fargo spokeswoman.
The manager of the Duluth branch declined to say how many employees were losing their jobs. But Rodriguez said those who aren’t placed will receive severance packages.
Wells Fargo Financial issued home mortgages to borrowers considered high-risk. Those loans stopped being issued July 8, as Wells Fargo imposes tougher lending standards.
Wells Fargo had escaped the financial troubles of many other subprime lenders, some of whom have gone bankrupt. Those with mortgages through Wells Fargo Financial will continue to be served by Wells Fargo.
“All of our customers will continue to receive service as normal,” she said. “There will be no impact on customer accounts. The accounts will be redistributed into another part of the Wells Fargo association.”
During the first three months of the year, Wells Fargo Financial issued less than 2 percent of all Wells Fargo’s real estate loans, a company release said.
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Labels: lenders, shuts down, wells fargo, wells fargo home mortgae
# posted by
Brian Vanderhoff @ 11:42 AM
Wells Fargo Home Mortgage, one of the nation’s largest home mortgage originators and servicers and part of Wells Fargo & Company, said it fully supports and will implement the administration’s plan to prevent foreclosures and help more Americans lower their mortgage payments.
The company will offer the Home Affordable Modification Program for its own loans and loans it services for Fannie Mae and Freddie Mac, as well as for all other investors unless their servicing contracts prohibit it. The company also will offer the administration plan’s refinancing options available to customers with Fannie Mae and Freddie Mac loans.
“We believe the administration’s plan is thoughtful and comprehensive, and it addresses the current challenges our nation faces,” said Mike Heid, co-president of Wells Fargo Home Mortgage. “Importantly, it helps customers facing true financial hardships while guarding against moral hazard.
“Wells Fargo has long advocated a standardized mortgage modification process, and we hope all investors will align with the plan so that more families can reach affordable mortgage payments. That, in and of itself, will go a long way toward stabilizing our economy for the benefit of all Americans. We also support the legislative changes required to extend this program to FHA and VA loans. ”
Customers calling Wells Fargo about the administration’s plan are encouraged to gather the documents they need to qualify for refinances or loan modifications as specified at www.wellsfargo.com/homeassist or www.wachovia.com. As the details of the modification and refinance plans become available, Wells Fargo plans to quickly put the systems in place to support these programs.
For more information, visit www.wellsfargo.com.
Labels: homeowner affordability and stability plan, modification program, wells fargo home mortgae
# posted by
Brian Vanderhoff @ 3:20 PM
