By Sam Boughedda
Investing.com - Wells Fargo (NYSE:WFC) intends to reduce its mortgage business, a Bloomberg report claimed Monday.
Wells Fargo's mortgage business used to provide one of every three home loans in the US, making it the most valuable bank in the country for a period.
However, according to Bloomberg sources, they are now said to be preparing to scale back the business, beginning with its ties to outside mortgage firms after changes in its executives and struggles to avoid regulatory probes which could impact its reputation.
Wells Fargo executives are reportedly drawing up plans to curb new lending and related businesses such as loan servicing. While they said many details are yet to be finalized, the bank will focus on lending to people who have an existing relationship with the bank or places where it's already present.
Wells Fargo was quoted as saying it is "evaluating" the size of its mortgage business to "adapt to a dramatically smaller originations market."