Wells Fargo & Co. will restructure its financial division, including closing its 638 Wells Fargo Financial stores, and exit the origination of nonprime portfolio mortgage loans, the lender says.
The remaining consumer and commercial loan products offered through Wells Fargo Financial, including Federal Housing Administration (FHA) home loans, will be realigned with those offered by other Wells Fargo business units and will be available through Wells Fargo’s network of community banking and home mortgage stores.
Less than 2% of all Wells Fargo's real estate loans were originated in Wells Fargo Financial stores in the first quarter.
As part of the restructuring, Wells Fargo plans to eliminate 2,800 positions during the next 60 days and another 1,000 positions during the next year. The bank says the Wells Fargo Financial reorganization will not not impact the number of community banking or home mortgage stores currently in operation.
