California

Wells Tightens Subprime Loan Criteria; Layoffs to Hit 320 

In response to deteriorating conditions in the subprime market, Wells Fargo Home Mortgage said late yesterday that it has tightened its underwriting criteria for HTLV, high debt-to-income, low credit score and low doc mortgage loans, effective February 16. The change in lending criteria will impact subprime origination volume going forward, according to a memo from Lynn Greenwood, senior vice president of communications over the company’s home and consumer finance group, and will drive roughly 320 layoffs at the company’s mortgage operation. The Charlotte Observer first reported on this story yesterday afternoon, noting that the company will lay off 250 employees in its Fort Mill, South Carolina-based location. Additional layoffs will be at the company’s Concord, Calif.-based location.