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Wells Fargo, once the nation’s largest mortgage lender, said it is growing its mortgage business.
The bank — which has its East Coast headquarters in Charlotte — is exiting the correspondent mortgage business. That’s when a bank writes loans to third-party lenders. It is also downsizing its mortgage servicing division.
Instead, Wells Fargo focuses on lending to small home buyers.
“Mortgages are an important relationship product, and our goal is to remain the number one mortgage lender for Wells Fargo Bank customers and minority homebuyers. We are deciding to reduce risk in the mortgage business by downsizing and narrowing our focus,” Wells Fargo Consumer Lending CEO Kleber Santos said in a statement. “As the largest bank lender to black and Hispanic families over the past decade, we are committed to advancing racial equity in homeownership.”
The majority of Wells Fargo’s mortgage business is based in Des Moines, Iowa. It is unclear whether the changes will lead to job cuts. The bank He laid off more than 400 people. Over the past year, rising interest rates have led to a decline in home purchases Register Des Moines.
In December, the Consumer Financial Protection Bureau slapped Wells Fargo. A fine of about 4 billion dollars By misapplying loan payments and foreclosing homes by mistake.
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