Wells Fargo Withdraws from the Mortgage Joint Venture Business
Company will complete wind-down over next 12 to 18 months and commits to minimizing impact to existing customer accounts or applications currently in process
DES MOINES - Wells Fargo & Company (NYSE: WFC) announced today that Wells Fargo Ventures, LLC, a wholly-owned operating subsidiary of Wells Fargo Bank, N.A., plans to withdraw from its eight joint ventures in mortgage lending. The decision is effective immediately and is expected to be completed over the next 12 to 18 months. No impacts on customer service or loan processing are expected. The decision is based on the current regulatory and market environment as changes in state and federal oversight have increased the complexity and difficulty of operating mortgage joint ventures. Wells Fargo began forming mortgage joint ventures more than 20 years ago, successfully leveraging them to provide mortgage lending and services to customers and referral sources around the country.
“This decision reflects our response to new operating realities and our commitment to continuously improving our business model,” said Franklin Codel, executive vice president, head of Mortgage Production. “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.”
Joint venture companies operate independently and impacts on each will vary. As of the second quarter 2013, the joint ventures contributed approximately 3% of Wells Fargo & Company’s mortgage production. Approximately 300 Wells Fargo team members will be impacted. This decision does not affect our commitment to our Retail and Correspondent mortgage businesses.
“Our Wells Fargo Ventures team is committed to delivering exceptional service and strong financial results as we wind down the business. We will also work to retain as many impacted team members as possible through other opportunities at the company,” said Jim Stavenger, senior vice president, head of Wells Fargo Ventures.
The eight joint ventures that Wells Fargo Ventures will be withdrawing from include:
- Bankers Funding Company, LLC
- Colorado Mortgage Alliance, LLC
- DE Capital Mortgage, LLC
- Home Services Lending, LLC
- Military Family Home Loans, LLC
- Prosperity Mortgage Company
- Premia Mortgage LLC
- Private Mortgage Advisors, LLC
Joint venture customers with a mortgage loan application in process will continue to have their applications processed by the joint venture and may call their mortgage consultant with questions.
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a nationwide, diversified, community-based financial services company with $1.4 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 9,000 stores, 12,000 ATMs, and the Internet (wellsfargo.com), and has offices in more than 35 countries to support the bank’s customers who conduct business in the global economy. With more than 270,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 25 on Fortune’s 2013 rankings of America’s largest corporations.
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