2008-11-21ml-implode.com

Update: Kevin Waetke, Communications Manager/Assistant Vice President contacted us and says the centers are not closing, but will "redistribute volume" and characterizes the layoffs as a "very small number of positions."

Wells Fargo will not project how many will be laid off.

According to a reliable source, Wells Fargo plans to cut its wholesale operations back by as much as 80-90% in the first weeks of December. An internal memo we were able to obtain lays out the consolidation of volume handling nationwide to just three offices in Springfield, MO, Minneapolis, MN and Lombard, IL. The memo states "affected team members were notified earlier today," but based on the lack of buzz we're seeing, many are likely still unaware of these changes. The consolidation cuts across all wholesale channels, including both Conventional and Government product lines.

Brokers may get scattered notification from AE's, but an "official" announcement isn't slated to go out until Monday of next week according to the memo. We have not been able to discern how many employees will be affected. Possibility of inside placement within the Wells family of companies was indicated:

"We're hopeful that our diversified financial services company... will present an opportunity for these talented team members within other areas..."

One can only hope. This will mean hundreds if not thousands of jobs.



Comments:

mortgagemess at 08:24 2008-11-22 said:
Scene: Kids at a museum of history

Mommy, what is that?

Aw..honey that is typewriter people used that before computers.

Mommy what is that?

Aw..honey that is a record album, they used that before music downloads.

Mommy what is that?

Aw..honey that is extinct form of man called a mortgage broker...now we use banks! Permalink

cindyc99@hotmail.com at 10:35 2008-11-22 said:
KIND OF CUTE RESPONSE..

BUT..i HAVE TO DISAGREE about the mortgage broker part

THE THIRD PARTY BUSINESS WILL SURVIVE..THERE are alot of ethical, hardworking mortgage brokers that have and will continue to provide a service to the public..

Its a difficult time now in the mortgage industry but Wholesale Lending will survive...

IN the long run it is still cheaper for lenders to originate loans through the wholesale channel,,, Permalink

Tobby at 03:03 2008-11-23 said:
Not sure what this means. 80-90 percent cutback of what? People, ROCs, work units? One would expect a cutback in December anyway from the holiday slowdown so I'm not sure how much of this would be permanent. Also, Wells has a good number of contract workers so that comment about layoffs may be accurate as they are not technically employees. One should always ask these guys how many "workers" will be affected.

I'm not suggesting otherwise, cutbacks in the wholesale space may indeed be coming, especially now that Wells is getting Wachovia branches. This will greatly expand their retail space. Guess we will have to wait and see on Monday. Permalink

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