Wells Will Expand Its Presence in Warehouse Lending

Wells Fargo & Company plans to expand its presence in warehouse lending using a platform it acquired when it bought Wachovia Corp. at year-end, according to industry officials familiar with the matter. Two sources at Wells confirmed the move but at press time a spokesman could not be reached for official comment. "The good news is that not only are they going to stay in it but they're going to expand it out," said one warehouse advisor. It's believed that at year-end Wachovia had commitments of about $1 billion. Non-depositories depend on warehouse credit to make loans in the primary market. Warehouse lending has been severely restricted because many banks and Wall Street firms have left the sector because of losses, failures, or capital restraints.