Wells Fargo to cut originator joint ventures as Dodd-Frank hits

by Diana Aqra26 Jul 2013

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.

COMMENTS

  • by David Leahey | 7/26/2013 9:34:12 AM

    nice to see that FD is doing something to crack down on continued questionable lending practices of the big companies. I would expect nothing less of the big boys.....

  • by James Wu | 7/26/2013 9:50:48 AM

    It is just a way that big banks cut relations with small companies and get more business in its own branches. This will reduce competition and raise the consumer cost.

  • by Mark Po | 7/26/2013 9:59:48 AM

    Remember the Golden Rule...he who has the gold makes the rules.

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