Few lenders capitalized on 2021's mortgage market like Wells Fargo. The bank issued $205 billion in mortgage loans, generating $8.1 billion in revenue., and helping more than 585,000 customers refinance or purchase a new home. The bank is also the nation's leading mortgage servicer, boasting a loan portfolio of almost $1 billion in unpaid principal balances.
It was a strong first full year for Kristy Fercho, who was named head of Wells Fargo home lending in July 2020 after holding a similar role at Flagstar Bank.
Under Fercho's leadership, the bank provided payment suspensions to more than 1 million customers through the course of the pandemic. She also focused on building a diverse and inclusive team throughout 2021. Today, 73% of Fercho's direct reports are from diverse backgrounds.
The mortgage business has been choppier in 2022 amid rising interest rates and recession fears. As a result, Wells Fargo has laid off about 200 mortgage employees this year as of August.
"Employees affected by these changes have each been an essential part of our success," Fercho said. "We are carrying out displacements in a transparent and thoughtful manner and providing assistance, such as severance and career counseling."
As Fercho navigates a changing market, she has also undertaken some new initiatives at Wells Fargo and the Mortgage Bankers Association. Last October, Fercho was named chair of the mortgage banker's main trade group, becoming the first Black woman to ever hold that position in the association's 109-year history. As chair, Fercho has emphasized closing the racial homeownership gap.
During her year-long tenure, she persuaded 270 MBA members to sign the "Home for All pledge," a commitment to support public policies and industry practices that advance minority homeownership and affordable rental housing.
Fercho has acted on this pledge at Wells Fargo as well. She spearheaded the company's "special purpose credit program," last spring, committing $150 million to lower mortgage rates and cut refinancing costs for minority homeowners. As of August, Wells Fargo completed outreach to eligible customers who have loans through the Federal Housing Administration. One arm of the program hopes to reach 40,000 homeowners of color who live in markets where there is a significant racial homeownership gap.
"I'm particularly proud of the special purpose credit program because it represents a meaningful step outside of business as usual not just for Wells Fargo, but for the entire industry," Fercho said.
