Wells Fargo to close Wells Fargo Financial outletsThe bank says the move will eliminate more than 2,800 jobs nationwide, with existing mortgages being serviced by other parts of Wells Fargo.
By: Candace Renalls, Duluth News Tribune
Wells Fargo Financial in Duluth will soon close, along with the division’s 600 locations across the country as Wells Fargo & Co. gets out of the subprime home mortgage business.
The branch, at 2220 Mountain Shadow Drive, is one of 13 outlets in Minnesota. Wisconsin has 15.
All will close by early September, eliminating more than 2,800 jobs. Another 1,000 positions probably will be eliminated during the next year, according to a company statement.
Like most of the branches around the country, the Duluth branch has about six employees.
“We’re working very closely with our community banking team members to reassign as many as possible,” said Diana Rodriguez, a Wells Fargo spokeswoman.
The manager of the Duluth branch declined to say how many employees were losing their jobs. But Rodriguez said those who aren’t placed will receive severance packages.
Wells Fargo Financial issued home mortgages to borrowers considered high-risk. Those loans stopped being issued July 8, as Wells Fargo imposes tougher lending standards.
Wells Fargo had escaped the financial troubles of many other subprime lenders, some of whom have gone bankrupt.
Those with mortgages through Wells Fargo Financial will continue to be served by Wells Fargo.
“All of our customers will continue to receive service as normal,” she said. “There will be no impact on customer accounts. The accounts will be redistributed into another part of the Wells Fargo association.”
During the first three months of the year, Wells Fargo Financial issued less than 2 percent of all Wells Fargo’s real estate loans, a company release said.