Wells Fargo & Company:

Wells Fargo & Co. is letting go 191 workers at its home mortgage operations center in Tempe as part of a housing slowdown-driven cutback. Wells Fargo will lay off the mortgage workers next month. Officials of the San Francisco-based bank said the slowed housing market has required tighter credit policies that have resulted in less subprime lending and consequently the mortgage job cuts in Tempe. Nonprime or subprime loans are geared toward consumers who do not qualify for traditional, conventional or prime mortgages and equity lines of credit because of lower credit scores and income levels. Subprime loans carry higher interest rates than conventional mortgages and became a popular alternative for home buyers and those seeking equity lines during the recent bullish housing market. A number of banks and other financial services groups dove into subprime lending markets in recent years, including larger institutions such as Wells Fargo. The go-go housing market has screeched to a halt, resulting in less traditional and subprime mortgages and lending. All of that makes subprime loans even more risky on the mortgage and home equity front.