Once the number one player in the market, Wells Fargo s stepping back from the multitrillion-dollar housing market in the United States a lending market that has essentially collapsed over the last year, according to CNBC.
The market dip since the Federal Reserve began raising rates in 2022 as well as questions about the long-term profitability of the business led to the decision to step back from the market, consumer lending chief Kleber Santos said.
“We are acutely aware of Wells Fargo’s history since 2016 and the work we need to do to restore public confidence,” Santos said, via CNBC. “As part of that review, we determined that our home-lending business was too large, both in terms of overall size and its scope.”
Wells Fargo is the third-biggest mortgage lender after Rocket Mortgage and United Wholesale Mortgage.
