Wells Fargo Withdraws From Mortgage JV Business

(RTTNews) - Wells Fargo & Co. (WFC) said Thursday that Wells Fargo Ventures, LLC, a wholly-owned operating subsidiary of Wells Fargo Bank, N.A., plans to withdraw from its eight joint ventures in mortgage lending.

The decision is effective immediately and is expected to be completed over the next 12 to 18 months.

The decision is based on the current regulatory and market environment as changes in state and federal oversight have increased the complexity and difficulty of operating mortgage joint ventures.

Wells Fargo began forming mortgage joint ventures more than 20 years ago, successfully leveraging them to provide mortgage lending and services to customers and referral sources around the country.

Joint venture companies operate independently and impacts on each will vary. As of the second quarter 2013, the joint ventures contributed about 3% of Wells Fargo & Co.'s mortgage production. About 300 Wells Fargo team members will be impacted.