Wells Fargo (Correspondent) - Non-prime
2007-06-29
As of today, Wells is suspending operations for its corresponding non-prime ("alternative") lending division. Text put out by the company and forwarded to us by a number of sources states:
Wells Fargo Correspondent Alternative Lending to No Longer Accept New Registrations or Locks
In recent months, the mortgage industry has faced volatile times associated with slowing housing appreciation, a flat yield curve and dramatic changes in the nonprime market. As a result, Wells Fargo has had to make difficult decisions about the businesses we support.
In Correspondent Alternative Lending, we have found that we simply cannot continue to meet acceptable standards of success while remaining fully committed to our responsible lending practices. For this reason, we have chosen to discontinue doing business under our existing structure. We are reviewing alternatives to help Correspondent Alternative Lending clients meet their nonprime mortgage needs. A Wells Fargo representative will contact you soon to discuss options with you.
Effective on Friday, June 29 at 5 p.m. Central time, we will no longer accept new registrations or locks through our existing Correspondent Alternative Lending program.
See more details here.
Wells was originally the #1 subprime lender as of the MBA's Q2 2006 scoreboard; however in recent months they ceased including their servicing activities, and thus dropped to some lower implied "rank".
As always, if you have any more information, please contact us.
Update: 2007-06-30 We received this additional information overnight (unconfirmed):
Aside from correspondent being shut down, Well Fargo wholesale has just been "consolidated" Effective June 29th the entire Western Division of Wells Fargo Wholesale has been downsized. The following locations are shut down and every member in those locations have been issued 60 day notices with severance. Rancho Cordova, Ca; Fresno, Ca; Bakersfield, Ca; Portland, Or; Phoenix, Az and the Nevada office. Roughly 500 employees will be let go with no option of relocation or alternate employment by Wells Fargo.
Important: This company is on our list of lending operations that have "imploded" (see also ailing lenders). However, please note that "imploded" is a somewhat subjective and does not necessarily mean operations are ceased permanently: it can mean bankruptcy filing, temporary but open-ended halting of major operations, or "firesale" acquisition. All information here is provisional, and may contain inaccuracies (especially newer information). If you are planning on doing business with this company or any other one listed on this site, you should inquire with them directly on whether they can still meet your needs. Many are still operating in some capacity.