Wells Closing Nonprime Wholesale Biz

Wells Fargo & Co., San Francisco, has announced that it will close its nonprime wholesale lending business, citing the "turmoil" in that sector of the mortgage business.Wells Fargo said the decision will have no effect on its prime lending business, and does not mean that the company will exit the nonprime sector. "Wells Fargo will continue to offer nonprime loans in channels where the company has direct relationships with consumers, including Wells Fargo Home Mortgage's retail channel and Wells Fargo Financial, an affiliate of Wells Fargo Bank NA," said Cara Heiden, president of Wells Fargo's home mortgage division. Wells said it made the move because it believes that "continued turmoil" in the sector would have resulted in returns for the wholesale channel for "the foreseeable future" that "are not commensurate with the risks inherent in this business." Wells Fargo can be found online at http://www.wellsfargo.com.