Wells Fargo Closes Nonprime Wholesale Lending Division

2007 July 26
Des Moines, Iowa
Press Release

Wells Fargo Home Mortgage, a division of Wells Fargo Bank, N.A., said today that it will close its nonprime wholesale lending business, which processes and funds nonprime loans for third-party mortgage brokers.

In 2006, this business represented 1.6 percent of Wells Fargo's total residential mortgage loan volume of $397.6 billion¹. "Wells Fargo will continue to offer non prime loans in channels where the company has direct relationships with consumers, including Wells Fargo Home Mortgage's retail channel and Wells Fargo Financial, an affiliate of Wells Fargo Bank, N.A," said Cara Heiden, Wells Fargo Home Mortgage division president.

"The decision to close our nonprime wholesale lending business has no effect on Wells Fargo's robust prime lending business which has long held an industry leading position. We will continue to offer prime loans through all our distribution channels, including wholesale." "For the foreseeable future, we believe continued turmoil in the nonprime sector will result in financial returns for our nonprime wholesale channel that are not commensurate with the risks inherent in this business," Heiden stated.

"As a result, we have chosen to discontinue this channel." As part of this decision, the company will close its nonprime wholesale operations in Baton Rouge, La., and Des Moines, Iowa. In Baton Rouge, where Wells Fargo does not have a significant presence, 170 positions will be affected and the company will work with other companies to identify local opportunities. In addition, team members will be encouraged to seek other positions within Wells Fargo & Company (NYSE: WFC) which has 168,000 team members across North America and is one of the United States' 25 largest employers.

In metro Des Moines, where Wells Fargo has 11,700 team members, the Company is working to identify positions in other areas of the organization for the 67 affected team members. "An advantage of being part of a national diversified financial services company - with 80-plus businesses - is the ability to manage the ebb and flow of staffing required for each business," Heiden said.

"Retaining talented team members has always been and will continue to be a top priority for our company." Wells Fargo Home Mortgage is the nation's No. 1 retail mortgage lender² and servicer³ of home mortgages. As a division of Wells Fargo Bank, N.A., it has local presence in more than 2,400 mortgage stores and branches, plus the capabilities to serve the home financing needs of customers nationwide through its call centers, Internet presence and wholesale lending operations.

Wells Fargo Home Mortgage services loans for more than 7.7 million mortgage customers. Wells Fargo Bank, N.A. is the only bank in the U.S., and one of only two banks worldwide, to have the highest credit rating from both Moody's Investors Service, "Aaa," and Standard & Poor's Ratings Services, "AAA."