Wells Fargo is planning a new mortgage lending campaign aimed at millennials. This comes a few years after the lender, the largest mortgage lender in the U.S., cut the number of loans it made. This plan may indicate that banks are now ready to take risks following the post-financial crisis pull back. It may also show that traditional lenders are starting to take back the market share they lost to lenders who have fewer regulations, such as Quicken or LoanDepot.
Head of the Wells Fargo home lending department, Franklin Codel, stated that the lender was especially looking to target first-time buyers who have put off purchasing a home. Codel continued that he believes that Wells Fargo and the mortgage industry as a whole is now ready to begin growing again.
Since 2008, Wells Fargo has tightened the regulations on Federal Housing Administration (FHA) mortgages and has quit making some mortgages altogether. This includes reverse mortgages and some joint ventures the lender had made with credit unions and other small lenders.
The decision comes after the Pew Research Center released figures showing that young people between 18 and 34 were not purchasing houses. The research indicated that the percentage of millennials living at home has reached a 130-year peak, but many expect this to change once millennials marry and have families.