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Wells Fargo, the top mortgage lending institution in the U.S., announced its cutting home loan services to instead focus on select customers, namely “individuals and families in minority communities.”
The financial services company claimed the decision is based on market changes and a slowing economy, but that apparently isn’t stopping the company from woke virtue-signaling.
“We are making the decision to continue to reduce risk in the mortgage business by reducing its size and narrowing its focus,” Kleber Santos, CEO of Consumer Lending said in a press release, according to the New York Post.
Kristy Fercho, Well Fargo’s head of Home Lending and head of Diverse Segments, Representation and Inclusion, noted that the company instead will “expand” its operations to focus on minority borrowers.
“We will continue to expand our programs to reach more customers in underserved communities by leveraging our strong partnerships with the National Urban League, Unidos US and other non-profit organizations,” Fercho said.
“We also will hire additional mortgage consultants in communities of color,” she added.
The company will reportedly continue to cater to existing customers and “underserved communities.”
The Post also reported the company intends to “expand its retail team by focusing on existing bank customers and underserved communities, invest an additional $100 million to ‘advance racial equity in homeownership’ and deploying additional Home Mortgage Consultants in local minority communities.”
“The press release highlighted that $150 million will also be used to serve minority communities looking to refinance or buy a home, ‘helping more black and hispanic families achieve homeownership,'” The Post added.
This comes amid a general mortgage collapse as the Federal Reserve has been hiking interest rates over the last year to supposedly fight historic 40-year-high inflation.
Though Wells Fargo was recently considered America’s top mortgage servicer with a $962 billion portfolio, its decision to step away from the U.S. mortgage market means a fresh round of layoffs are imminent and a deeper recession is likely in 2023.
“Altogether, the shift will result in a fresh round of layoffs for the bank’s mortgage operations, executives acknowledged, but they declined to quantify exactly how many jobs will be lost. Thousands of mortgage workers were terminated or voluntarily left the company last year as business declined,” CNBC reported.
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