Posted by Harry [NR] on 7/31/07 7:08pm
Msg #203095
Wells Fargo Closes Subprime Unit
Wells Fargo has a very large presence in Des Moines, IA, where Notary Rotary is located, and this article was featured in the business section of the Des Moines Register last Friday:
http://www.desmoinesregister.com/apps/pbcs.dll/article?AID=2007707270372
Key excerpts:
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Wells Fargo & Co. has shuttered its West Des Moines-based business that funded subprime home loans made by independent mortgage brokers, leading to the elimination of 67 jobs locally.
...
"For the foreseeable future, we believe continued turmoil in the non-prime sector will result in financial returns ... that are not commensurate with the risks," said Cara Heiden, president of Wells Fargo's home mortgage unit. "As a result, we have chosen to discontinue this channel"
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Jim Wyble, a senior vice president at Wells Fargo, said that the company would continue to make subprime home loans, but they will be written directly by the company rather than through middlemen.
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Wells Fargo employs 12,000 people in the Des Moines area. It's the nation's second-largest home lender.
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This is not hugely significant, but is a little more writing for the wall nonetheless...
Harry
Notary Rotary
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