Wells Fargo & Co. is planning to reduce its vast mortgage empire, which once produced out one of every three home loans in the US
Wells Fargo (NYSE:WFC) is planning to dramatically reduce the size of its mortgage lending business, Bloomberg reported Monday, shedding its commitment to be No. 1 in the business x years after Charlie Scharf took over as CEO and as the bank tries to get into regulators’ good graces. The effort is likely to begin with severing ties to outside mortgage firms that produced about a third of its $205B in new home loans last year, Bloomberg said, citing people familiar with the business. With the change, Wells Fargo (WFC) is likely to focus on lending to existing customers or in places where it’s already present. The shift is likely to include paring or potentially stopping so-called correspondent mortgage lending, a business in which Wells Fargo (WFC) provides funding for loans that are arranged by outsiders, the people told Bloomberg. The mortgage business is already suffering from lower volumes as interest rates increase. During such downturns, staffing in the mortgage business normally are cut. With the change in focus, Wells Fargo (WFC) will make deeper cuts, Bloomberg said. NN: When the big dicks flee the whore house their must be a monkeypox epidemic….