Wells Fargo Is Downsizing Its Mortgage Business. Good.
The large bank Wells Fargo (NYSE: WFC) recently announced that it is planning to significantly scale back its mortgage business, a big move when you consider the bank not long ago was the largest mortgage originator in the country.
Wells Fargo plans to continue providing mortgages for existing customers and homebuyers in minority communities. Furthermore, the bank is going to close its third-party mortgage-buying business in which it would purchase mortgages originated by other lenders. The bank is also planning to sell the bulk of its mortgage-servicing business.
The move is a big shift for CEO Charlie Scharf as he continues to transform the bank, but ultimately one that I think is a good move and that will position Wells Fargo more like a modern-day bank.
Source Fool.com
