Wells Fargo, the mortgage market leader, withdraws from the market.

By The Exchange Team

Wells Fargo is leaving the multitrillion-dollar U.S. mortgage industry due to regulatory pressure and increased interest rates.

The company will now focus on house loans for established banks instead of reaching as many Americans as possible.

And, according to CNBC, wealth management customers and borrowers from ethnic populations.

Consumer lending chief Kleber Santos attributed the decision to a collapsed lending market and concerns about the business's long-term profitability.

Since Wells Fargo's 2016 fake accounts incident, mortgage lending has been closely monitored by regulators.

"We are very aware of Wells Fargo's past since 2016 and the work we need to do to regain public confidence," Santos said in a phone interview.

“We judged that our home-lending business was too enormous, both in size and scope, as part of that review.”