Kathryn Hardison
Wells Fargo & Co. is exiting the correspondent business and intends to scale back its services portfolio as it attempts to build a more focused mortgage business.
The financial services firm said Tuesday that its strategic plan includes optimizing its retail team to focus on banking customers and underserved communities.
Given the current market environment, Wells Fargo seeks to expand its existing $150 million investment from special purpose credit programs to purchased loans.
The company also plans to invest $100 million to promote racial equality in home ownership, including strategic partnerships with nonprofits.
Wells Fargo says its strategic direction for its mortgage business and programs that promote racial equality will supersede 2016 and 2017 commitments to lend to minority homeowners It says.
Write to Kathryn Hardison@wsj.com.
