Wells Drops TPO 'Low-Balance' Commercial Mortgage Effort

In yet another sign that depositories are shunning loan brokers and even correspondents, Wells Fargo & Co. said it would no longer fund "low balance" commercial mortgages through third parties.A spokesman for Wells Fargo Home Mortgage said low balance commercial mortgages range in size from $50,000 to $500,000. No annual production figures were available at press time. WFHM will continue to offer the product through its retail channel. Loan brokers have been hurt by a stampede of table funders away from the business, though of late, no wholesaler of size has exited the channel. The spokesman said "We are currently in the process of notifying correspondent and wholesale business channels" about the change. The bank is suspending the program due to "market conditions."