Bradley partner Robert Maddox was quoted in National Mortgage News on Wells Fargo’s potential correspondent exit and its impact on the mortgage industry in the future. The mortgage pullback was first mentioned in a Bloomberg News article.
Wells Fargo’s profits in the correspondent channel have declined dramatically since 2021. This decline has caused discussion on the benefits and drawbacks of Wells Fargo exiting the channel and the impact for smaller investors and lenders.
"With a leader like Wells Fargo publicly announcing a decrease in their mortgage business, it should clearly signal the industry and government how radically complex the mortgage has become in the last decade,” said Maddox, chair of Bradley’s Banking and Financial Services Practice Group.
Maddox views overregulation of the mortgage business as a contributing factor to Wells Fargo’s cutback on mortgage, noting "the irony appears to be that the government and consumer advocates believe they are defenders of the American consumer but what they are actually doing is actually driving banks to reduce their investment in American homeownership."
The original article, “”How Wells Fargo’s correspondent exit may impact the mortgage industry,” appeared in National Mortgage News on August 17, 2022.