Monday, July 2, 2007

Wells Fargo Correspondent Alternative Lending closed

We’re all used to small and medium-sized “sub-prime” lenders going out of business, because there’ve been so many sales, acquisitions and “crises” lately. Although Wells Fargo works on a much larger scale than most loan providers, it seems that the subprime “meltdown” has affected them too.

Wells Fargo’s non-prime lending division will no longer be accepting new registrations or locks, effective Friday, June 29 at 5 p.m. The company named “volatile times” for the mortgage industry and “slowing housing appreciation” as the reasons for their business difficulties. The lender’s clients will be contacted by Wells Fargo representatives to discuss options. Loans registered but not received by 5 p.m. on Friday will not be accepted, but loans currently in the pipeline will be processed by Wells’ Baton Rouge Team.

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