After heavy subprime mortgage losses, Wells Fargo has announced the closure of the Finance Division. Only about 3,800 of the 14,000 jobs within the Finance Division could be lost. Wells Fargo financial products, such as line-of-credit loans, will nevertheless be available.
Wells Fargo Finance Division
Open for over 100 years, Wells Fargo Finance has operated separately from Wells Fargo Banking. The Finance Division of Wells Fargo underwrites small loans, autoloans, mortgages, and other styles of financing. Only $ 1.5 billion of the $ 24.7 billion in real estate loans held by the finance division are considered prime. On-level with other lenders, the Wells Fargo Finance Division only lost about 4.6 percent of value within the last quarter.
Wells Fargo and also the takeover of Wachovia
In 2008, Wells Fargo began a federally-pushed merger with Wachovia. Wells Fargo brought in liabilities also as branches. You will find about 8,800 total branches between Wells Fargo, Wells Fargo Home Mortgage, and Wachovia. The takeover of Wachovia was forced by government regulators, who wanted to ensure that Wachovia bank would not fail. As a separate entity, Wachovia was dissolved in March of 2010.
Wells Fargo plans on continuing to lend money
Customers who are borrowing money will still be able to approach Wells Fargo for help. Fast personnel loans and auto loans with bad credit can be products offered inside Wells Fargo. The company does nevertheless intend on offering mortgages, but instead of subprime offerings, FHA-backed loans can be the focus. Loans are less likely to default back to the bank when they are supported by the federal government. Wells Fargo will continue to service unsecured personal loans and auto loans.
