Get 40% Off
These stocks are up over 10% post earnings. Did you spot the buying opportunity? Our AI did.Read how

Wells Fargo to pull back from home lending business

Published 2023-01-10, 04:52 p/m
© Reuters.

By Yasin Ebrahim

Investing.com -- Wells Fargo (NYSE:WFC) is retreating from its mortgage business to create a more focused home lending business at a time when rising interest rates have dampened mortgage demand.

The company will now offer home loans only to existing customers as well as individuals and families in minority communities. The bank also said it would also step away from its correspondence business that sells mortgages through third-party firms.

The decision would “continue to reduce risk in the mortgage business by reducing its size and narrowing its focus," Wells Fargo said. 

The move comes amid a jump in interest rates that has wreaked havoc on mortgage and refinancing demand. 

Mortgage application volume fell 13.2% for the week ended Dec. 30, from two weeks earlier, according to the Mortgage Bankers Association’s seasonally adjusted index.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.