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November 30, 2007
Bracing for Home Loan Losses, Wells Fargo to Take Big Charge
Losses on home equity loans will force Wells Fargo & Co. to take a $1.4 billion charge for the fourth quarter. The second-largest mortgage lender in the country, which also expects to write off $1 billion next year and in 2009, has been able to avoid many of the problems in the credit and capital markets until now. Wells Fargo also announced that it would no longer use indirect channels to originate or acquire home equity loans and that $11.9 billion, or about 3 percent of total loans outstanding, will be placed in a special liquidating portfolio.
Posted by S. Germain at November 30, 2007 09:02 AM