Wells Fargo & Company (NYSE:WFC) is dissolving eight more of its joint ventures for lending mortgages as it pares down its stake in the weakening industry.
The San Francisco-based bank said Thursday it will withdraw from the businesses immediately, and the pullout would be completed over the next 12 to 18 months.
“The decision reflects our response to new operating realities and our commitment to continuously improving our business model,” Franklin Codel, executive vice president and head of mortgage production, said in a statement.
The companies, funded by Wells Fargo but operated independently, contributed about 3 percent of the bank’s mortgages backed by the bank.
The move comes nearly two weeks after Wells Fargo, the largest mortgage lender, posted record profits in the second-quarter earnings report. However, it saw steady growth in its wealth management division, Forbes noted.
But the bank closed down about 100 joint ventures last year, and closed the St. Louis-based Edward Jones Mortgage in February.
Alexander C. Kaufman is a reporter at the International Business Times covering companies, retail and media. He joined in May 2013. Previously, he was an editor of...