Wells Fargo Plans to Scale Back Mortgage Business, Bloomberg Reports

WFC

By Dean Seal

--Wells Fargo & Co. is preparing for a major downshift in its long-dominant mortgage business, Bloomberg reports, citing unnamed sources.

--The San Francisco-based bank's executives are looking to curb new lending and related businesses, including loan servicing, according to the report.

--Wells Fargo will likely start by cutting ties with outside mortgage firms that were responsible for about a third of its new home loans last year, Bloomberg reports.

--The bank tells Bloomberg that it is evaluating the size of its mortgage business to "adapt to a dramatically smaller originations market."

--The retreat comes after a series of scandals that have rocked the bank, including recent allegations that Wells Fargo denied refinancings for Black homeowners more often than it did for White ones.

Write to Dean Seal at [email protected]

(END) Dow Jones Newswires

08-15-22 0743ET