Wells Fargo Exits Reverse-Mortgages, Who's Next?

Wells Fargo WFC announced today that it would be exiting the reverse-mortgage business, on the potential for further declines in U.S. home values. “The decision was made based on today's unpredictable home values,” the San Francisco-based lender said today in a statement distributed by Business Wire. "Wells Fargo will continue to service the loans of existing (HECM) reverse mortgage customers,” said Franklin Codel, executive vice president, head of National Consumer Lending, “We will continue to provide options for seniors who wish to determine ways to access the equity in their homes.” The company will exit the business as of the end of the month. Last year, the San Francisco-based bank had 2.2% of its retail mortgage volume in reverse mortgages, and 1.2% of its overall mortgage volume. If Wells Fargo is exiting the business, then it is probably safe to assume that Bank of America BAC, J.P. Morgan JPM and Citigroup C are not far behind in getting out of the business.