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AZ Subprime Layoffs at Wells

AZ Subprime Layoffs at Wells

121 Tempe employees laid off

March 19, 2007

By COCO SALAZAR

photo of Coco Salazar
Changes in subprime lending guidelines at Wells Fargo Home Mortgage have resulted in Arizona job cuts.

Wells notified 121 employees at its home mortgage operations center in Tempe, Ariz., that their jobs will be eliminated next month, according to an e-mail statement from spokeswoman Debora Blume.

The job cuts are in consequence to the Feb. 16 updates to nonprime lending credit policy resulting from “changing market conditions — such as moderating house price appreciation,” Wells said. The nonprime credit policy changes reportedly included loans with high loan-to-value, high debt-to-income ratios, lower credit scores and low documentation.

“This decision directly impacts our nonprime loan volume, which in turn impacts staffing levels in the areas devoted to managing these loans,” the statement read.

The Arizona employees received the 60-day layoff notices last month — the same time as 320 other workers in Fort Mills, S.C., and Concord, Calif.

Within the 121 Arizona layoffs are mortgage specialists and telesales employees, Blume said.

The San Francisco-based lender said it will give special consideration to employees who seek other jobs within the company and that most affected workers are offered separation benefits, including insurance and salary continuation based on years of service.

Related:

Wells Cuts Grow
In addition to South Carolina employees, Wells Fargo Home Mortgage will cut several California workers as a result of changes to its nonprime credit policy.

Nonprime Wells Cutbacks
Wells Fargo Home Mortgage tightened its nonprime underwriting guidelines and gave notice to hundreds of employees.

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