Wells Fargo & Co.’s home lending unit will no longer offer renovation mortgage products due to the complexity and risk of the loans.
Wells Fargo Home Mortgage has confirmed in a statement to Mortgage Daily that it will discontinue the origination of renovation mortgage products.
Included in the program are 203K loans insured by the Federal Housing Administration,
conventional renovation loans and nonconforming renovation loans.
“We based this decision on the elevated business risk of these products, origination and systems complexity, and extensive processing,” the statement said.
Wells praised the work done by renovation mortgage employees who built the business over 23 years.
While Wells didn’t respond to a question about how many employees are impacted, it did note that impacted employees will receive career transition resources to help prepare for another job.
No more renovation mortgage applications will be accepted after
June 1.
