Wells Fargo to shrink mortgage business, exit correspondent lending

A man uses an automated teller machine at a Wells Fargo Bank branch on a rainy morning in Washington January 17, 2012. REUTERS/Gary Cameronwill slim down its home lending business by reducing its mortgage servicing portfolio and exiting the correspondent lending business, the company said on Tuesday.

“We are making the decision to continue to reduce risk in the mortgage business by reducing its size and narrowing its focus," Kleber Santos, the bank's chief executive for consumer lending, said in aDemand for mortgages and refinancing has weakened as U.S. interest rates climbed, making it more costly to buy homes.

The slowdown prompted Wells Fargo to cut thousands of jobs in is mortgage unit across the country last year.on Friday. Analysts expect a profit of 62 cents a share, compared with $1.25 in the year ago quarter, according to data from Refinitiv. The bank also plans to invest an additional $100 million to advance racial equity in home ownership, it said.

In December, the U.S. Consumer Financial Protection Bureau hit Wells Fargo with its largest ever civil penalty as part of a $3.7 billion agreement to settle charges over widespread mismanagement of car loans, mortgages and bank accounts.

Been in real estate for many years. It hasn't slowed and it won't lol

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Wells Fargo, once the No. 1 player in mortgages, is stepping back from the housing marketIt's the latest, and perhaps most significant, strategic shift that CEO Charlie Scharf has undertaken since joining Wells Fargo in late 2019. WellsFargo is one of the most rotten, despicable banks out there. Love the employees and local branch bankers. Corporate management and leaders are absolutely terrible Hugh_Son it’s “correspondent business” not “correspondence”. 👍 Lol, it's a BS move. The guy giving the statement (Kleber Santos) is lying. He said that he is aware of the 2016 scandal regarding the banks and that shrinking the lending department is a remedy of this. I used to work for WF as a loan officer or HMC. The scandalous activity took
Source: CNBC - 🏆 12. / 72 Read more »