Dodd-Frank regulations are forcing the nation’s largest residential home lender to cut eight joint ventures with other originators, according to a report.
The bank partners with affiliates who fund and close loans and then sell them to Wells Fargo, according to a story by American Banker Thursday.
The Consumer Financial Protection Bureau’s regulations are cracking-down on whether or not those loans would meet qualified loan standards, the report said.
The eight ventrures took up about 3% of Wells’ origination production during the second quarter and 300 employees will be affected over the next year and a half or so, the report added.
The JVs include, Colorado Mortgage Alliance, DE Capital Mortgage, HomeSErvices Lending, Military Family Home Loans, Prosperity Mortgage, a real estate firm Long & Foster, Premia Mortgage and Private Mortgage Advisors.