Jim Cramer Blog

Wells Fargo & Co. (NYSE:WFC - News), the second-largest U.S. mortgage lender, said on Thursday it will close its nonprime wholesale lending business, which processes and funds loans for third-party brokers, citing turmoil in the market for riskier home loans.

The company will shut operations in Baton Rouge, Louisiana, resulting in a loss of 170 jobs, and in Des Moines, Iowa, where it will seek other positions for 67 affected workers. Wells Fargo's home mortgage unit is based in Des Moines, while the parent is based in San Francisco.
Wells Fargo, which is also the fifth-largest U.S. bank, said nonprime wholesale lending last year represented 1.6 percent of its $397.6 billion of residential mortgage loan volume. It said it will still offer nonprime loans directly to consumers through its Wells Fargo Home Mortgage and Wells Fargo Financial units.

Labels: Wells Fargo and Co., WFC