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(Reuters) – Wells Fargo (WFC.N) said on Wednesday it was exiting correspondent business, trimming the size of its services portfolio and focusing more on mortgages.
Mortgage lenders like Wells Fargo have seen demand for mortgages and refinances weaken as interest rates rise and homes become more expensive to buy.
As a result, the nation’s fourth-largest lender cut thousands of jobs in the national mortgage sector last year after aggressive expansion during the pandemic.read more
“We have decided to continue to de-risk our mortgage business by downsizing and narrowing our focus,” said Clever Santos, CEO of Consumer Finance. rice field.
The reorganization comes three days before the bank’s fourth quarter results. Analysts expect Wells Fargo’s earnings to fall 62 cents in the three months ending Dec. 31 from $1.25 a year ago, according to Refinitiv data.
The lender also plans to invest an additional $100 million to promote racial equality in home ownership, it said.
Reported by Mehnaz Yasmin, Bengaluru.Edited by Krishna Chandra Elli and Maju Samuel
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