Wells Fargo to scale back mortgage business, exit correspondent lending

Amid regulatory pressure and the impact of higher interest rates.Wells Fargo (NYSE: WFC) announced today strategic plans to create a more focused Home Lending business aimed at serving bank customers, as well as individuals and families in minority communities. Notably, the company is exiting the Correspondent business and plans to reduce the size of its Servicing portfolio. These plans continue the work the company has advanced over the past three years to simplify this business.

The company will continue to be the primary mortgage lender to its existing bank customers, as well as minority homebuyers. “We are making the decision to continue to reduce risk in the mortgage business by reducing its size and narrowing its focus,” said Kleber Santos, CEO of Consumer Lending. In keeping with that decision, Wells Fargo also plans to deploy additional Home Mortgage Consultants in local minority communities.