Source: CNN Business —
New York(CNN)Wells Fargo, long one of the biggest players in the mortgage business, is taking a big step back.
The scandal-ridden bank announced a significant shift on Tuesday to focus its mortgage business on serving bank customers and minority homebuyers instead of acquiring new customers.
Wells Fargo said it will also exit its correspondent business, which buys loans made by other lenders, and reduce the size of its mortgage servicing portfolio.
The retreat will likely cause Wells Fargo to lay off at least some employees, though the bank did not announce any specifics. A spokesperson declined to comment on potential layoffs.
“Mortgage is an important relationship product, and our goal is to continue to be the primary lender to Wells Fargo bank customers as well as minority homebuyers,” Kleber Santos, Wells Fargo’s head of consumer lending, said in a statement.
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