Wells Fargo said it will focus its powerful home mortgage business on existing bank and wealth management customers and minority customers, pulling back from its previous strategy of reaching a broad swath of Americans.
The bank said the decision stemmed from a collapse in the lending market since the Federal Reserve began raising rates last year and questions about the long-term profitability of the business, consumer lending chief Kleber Santos told CNBC. Wells Fargo has faced major scrutiny after its 2016 fake accounts scandal.
