Major banking giant Wells Fargo has decided to stop offering subprime mortgages and plans to close 638 subprime lending offices that operate nationwide. The subprime mortgages are typically handed out to those in lower-income neighborhoods.
The bank decided to drop the mortgages because they simply don’t provide the business that it’s looking for anymore. However, it will still provide subprime auto loans and credit cards. As a result the unit closure, about 3,800 employees will lose their jobs (LA Times).
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