Wells Fargo Dials Back Mortgages, Servicing in New Strategy
- Bank will stop funding some home loans, curb debt servicing
- Wells is shrinking its mortgage empire amid clean-up effort
A Wells Fargo bank branch in New York.
Photographer: Victor J. Blue/BloombergThis article is for subscribers only.
Wells Fargo & Co., announcing a “new strategic direction” for a mortgage empire that was once the largest in US banking, said it will stop funding home loans arranged by outsiders and shrink the portfolio of debts that it services.
The retreat from so-called correspondent lending and reduction in servicing caps years of efforts to clean up a business that entangled Wells Fargo in regulatory probes and lawsuits. Bloomberg News broke the news on company’s intent to pull back from such businesses in August.