Saying changes in state and federal oversight have increased the complexity and difficulty of operating mortgage joint ventures, Wells Fargo said today its subsidiary Wells Fargo Ventures LLC will withdraw from its eight joint ventures in mortgage lending over the next 12 to 18 months, laying off 300 employees in the process.
The eight joint ventures Wells Fargo is withdrawing from are:
- Bankers Funding Company LLC
- Colorado Mortgage Alliance LLC
- DE Capital Mortgage LLC
- Home Services Lending LLC
- Military Family Home Loans LLC
- Prosperity Mortgage Co.
- Premia Mortgage LLC
- Private Mortgage Advisors LLC
HomeServices of America said it plans to continue operating HomeServices Lending LLC as sole owner.
The transition “has been underway for some time, and is expected to conclude in 2014,” the Berkshire Hathaway affiliate said in a press release.
HomeServices of America provides mortgages, title insurance and escrow services, homeowners insurance and relocation services through affiliated businesses.
The change in ownership structure “does not impact HomeServices Lending’s current operations or organization,” the company said. The “decision to move to a wholly owned subsidiary strategically aligns with HomeServices of America’s growth strategy, and supports its business model of providing buyers and sellers with fully integrated homeownership services.”