Wells Fargo Home Mortgage of Des Moines confirmed Monday that it had shuttered its correspondent nonprime loan channel Friday.
Thirteen jobs were eliminated in Baton Rouge, where the channel had back-office operations. No jobs were cut in Fort Mill, S.C., where the channel's sales function was based.
The channel's offerings included interest-only and 2/28 and 3/27 hybrid adjustable-rate mortgages.
"We have found that we simply cannot continue to meet acceptable standards of success while remaining fully committed to our responsible lending practices," the Wells Fargo & Co. unit said. It is "exploring alternative options for fulfilling the nonprime needs" of its correspondents.
