The largest home lender in the U.S., Wells Fargo (WFC 1.61%) announced this week that its wholly owned subsidiary Wells Fargo Ventures LLC will withdraw from its eight mortgage lending joint ventures.
In a statement, the company said 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 Ventures LLC plans to wind down the joint ventures over the next 12 to 18 months.
The company said leaving the partnerships won't affect its commitment to its own mortgage business.
As of 2013's second quarter, contributions from these joint ventures contributed approximately 3% of Wells Fargo's mortgage production. Wells Fargo has estimated that approximately 300 jobs will be affected by the decision. Customers with a mortgage loan application in process from any of the eight joint ventures will continue to have their applications processed by these companies.
The ventures that Wells Fargo will be exiting are: Bankers Funding Company LLC; Colorado Mortgage Alliance LLC; DE Capital Mortgage LLC; Home Services Lending LLC; Military Family Home Loans LLC; Prosperity Mortgage Co.; Premia Mortgage LLC; and, Private Mortgage Advisors LLC.
-- Material from The Associated Press was used in this report.
