Following those once-huge mortgage players in slimming down their operations has implications for the U.S. mortgage market.
The correspondence channel is a significant pipeline of business for San Francisco-based Wells Fargo, one that became larger as overall loan activity shrank last year. In October, the bank42% of the $21.5 billion in loans it originated in the third quarter were correspondence loans. "It's very different today running a mortgage business inside a bank than it was 15 years ago," Scharf told analysts in June. "We won't be as large as we were historically" in the indusry, he added.Wells Fargo said it was investing $100 million towards its goal of minority homeownership and placing more mortgage consultants in branches located in minority communities.
The mortgage shift marks what is potentially the last major business change Scharf will undertake after splitting the bank's operations into five divisions, bringing in 12 new operating committee members and creating a diversity segment.
Time to clean house at Wells Fargo
So if you're white and not a current customer, you can't get a mortgage with them? That seems kinda racist if you ask me.
Rumor has it they are getting back to basics, but this time they'll use faster horses to pull the stage coaches.
'Will only make home loans to bank clients and minority borrowers' Deeply disturbing business strategy.
Here's what is going to happen: WF is going to lay a bunch of poor loan officers off to cut costs. Then they're going to be able to lower their margins on mortgage rates. Then they're going to advertise those lower rates to the public while pretending it's only for their current
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
$WFC is shit at resi mortgages Boston area, don't recall many buyers using Wells Fargoat over past 20 years. Could be they just don't have much presence here.
Hugh_Son it’s “correspondent business” not “correspondence”. 👍
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