Wells Fargo to reduce mortgage servicing portfolio
Business
US Bank will spend additional $100 million to promote racial equity in house ownership
(Reuters) - Wells Fargo & Co. will reduce the size of its mortgage servicing portfolio and depart the correspondent lending market, according to a statement released on Tuesday.
Kleber Santos, the bank s top executive for consumer loans, stated in a statement that they were choosing to continue to minimize risk in the mortgage sector by lowering its size and refining its focus.
Demand for mortgages and refinancing has decreased because of rising US interest rates making it more expensive to purchase a house. Wells Fargo slashed hundreds of positions nationwide in its mortgage division last year due to the downturn.
The company will release its fourth-quarter earnings on Friday. According to Refinitiv statistics, analysts have anticipated a profit of 62 cents per share down from $1.25 in the same period last year.
Additionally, the bank stated that it will spend an additional $100 million to promote racial equity in house ownership.
The biggest civil fine ever levied by the U.S. Consumer Financial Protection Bureau was levied against Wells Fargo in December as part of a $3.7 billion settlement deal to resolve allegations of widespread mishandling of bank accounts, mortgages and auto loans.
