Wells Fargo To Exit Correspondent Business

Wells Fargo (WFC) Tuesday revealed that it is exiting the correspondent business and plans to reduce the size of its servicing portfolio.

The company says the decision is part of its strategy to create a more focused Home Lending business aimed at serving bank customers, as well as individuals and families in minority communities.

"Mortgage is an important relationship product, and our goal is to continue to be the primary mortgage lender to Wells Fargo 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. "As the largest bank lender to Black and Hispanic families for the last decade, we remain deeply committed to advancing racial equity in homeownership."

"We will continue to expand our programs to reach more customers in underserved communities by leveraging our strong partnerships with the National Urban League, UnidosUS and other non-profit organizations," said Kristy Fercho, head of Home Lending and head of Diverse Segments, Representation and Inclusion at Wells Fargo. "We also will hire additional mortgage consultants in communities of color."

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