Wells Fargo is planning a retreat in its mortgage business, according to a report released by Wells Fargo.
According to a source, the number-one mortgage originator of commercial banks is looking to reduce its ties to outside mortgage firms, which accounted for about a third of its new-home loans last year. The company told the news agency that it is evaluating the size of its mortgage business in light of the smaller originations market.
Wells Fargo WFC has been in a number of scandals, including one in the mortgage business, where it rejected applications for black homeowners more than white ones. The Federal Reserve has imposed an asset cap on Wells Fargo until the bank's regulatory practices improve.
Rocket Mortgage and United Shore Financial originated last year, though Wells Fargo leads commercial banks in mortgage activities.
Wells Fargo's shares have slipped 4% this year, an increase of 10% for the S&P 500 SPX, a performance that was not maintained by the stock market at the end of the year.