Wells Fargo (WFC) announced on Wednesday (MY time) that it would make a major strategic shift with implications for mortgage customers. Check out its Earnings scheduled tonight. It closed at USD42.83 (+USD0.07 l +0.16%) yesterday.

Wells said that it would focus the scope of its home lending business, with the goal of serving more of its bank customers along with prospective clients in minority communities. The bank will cut the size of its mortgage servicing portfolio too.

In addition to internal efforts to serve bank customers and underserved communities, Wells will add to its Special Purpose Credit Program, along with making a USD100 million investment to advance racial equity in owning homes.

Given the immense size of the corresponding lending business, Wells Fargo's strategic shift is a big deal. The move could be an important sign that could finally start to lift the clouds that have hung over the bank from years of customer scandals.

Source: The Motley Fool

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