In order to streamline its mortgage business, Wells Fargo is exiting the correspondent business and plans to reduce the size of its mortgage servicing portfolio.
“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,” says Kleber Santos, CEO of Consumer Lending for Wells Fargo, in a release. “We are making the decision to continue to reduce risk in the mortgage business by reducing its size and narrowing its focus.”
This includes a stronger focus on individuals and families in minority communities.
“As the largest bank lender to Black and Hispanic families for the last decade, we remain deeply committed to advancing racial equity in homeownership,” Kleber says.
As part of this, the bank plans to optimize its retail operations to focus primarily on bank customers and underserved communities.
In addition, it will broaden its existing $150 million investment in its Special Purpose Credit Program (SPCP) to include purchase loans, given the current market environment.
Wells Fargo will also invest an additional $100 million to advance racial equity in homeownership, including strategic partnerships with nonprofit organizations and community-focused engagements.
“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,” says 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.”
Photo: Keagan Henman