Wells Fargo, one of the largest home lenders in the U.S., said it it stepping away from the market for home equity lines of credit because of uncertainty tied to the coronavirus pandemic.
“Wells Fargo Home Lending will temporarily stop accepting applications for all new home equity lines of credit (HELOCs) after April 30,” the bank said in a statement.
During tough economic times, HELOCs are riskier products for banks because in a foreclosure, the lender who made the primary mortgage is first in line to get paid in a recovery.
via .ORGWorld News
By Money & Finance
Between 13,250 people and 26,500 people could be out of a job
So said the third-largest bank in the U.S. yesterday.
The what: The bank said it'llÂ cut 5% to 10%Â of its employee headcount over the next three years. Wells Fargo (+0.60%) currently has about 265,000 employees, meaning between 13,250 people and 26,500 people could be out of a job.
The why:Â It's part of Wells Fargo'sÂ ongoing turnaround plan. Remember, Wells (which has $1.9 trillion in assets) isÂ stillÂ recovering from a series of scandals in the past two years. In justÂ oneÂ example, branch employees opened millions of fake accounts in customers' names to meet sales targets.
+ While we're here:Â It's been a tough week all around for Wells CEO Tim Sloan. His team had toÂ deny rumorsÂ that former Goldman Sachs exec (and former member of the Trump admin) Gary Cohn would be replacing Sloan atop Wells Fargo.
via TheWorldNewsOrgWorld News