Wells Fargo Plans Exit of Correspondent Business As It Focuses on Home Lending

By Kathryn Hardison

Wells Fargo & Co. will exit its correspondent business and plans to reduce the size of its servicing portfolio as it attempts to create a more focused home lending business.

The financial-services company said Tuesday that its strategic plans include optimizing its retail team to focus on bank customers and underserved communities.

Wells Fargo aims to broaden its existing $150 million investment from its special purpose credit program to include purchase loans, given the current market environment.

The company also plans to invest $100 million to advance racial equity in homeownership, including strategic partnerships with non-profit organizations, it said.

The strategic direction for the company's home lending business and programs to advance racial equity will replace the 2016 and 2017 minority homeownership lending commitments made under prior leadership, Wells Fargo said.

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(END) Dow Jones Newswires

01-10-23 1644ET