Wells Fargo Plans to Shrink Its Vast US Mortgage Empire

Wells Fargo is retreating from home lending, marking a significant strategic shift. Despite earning $57 billion in fees over the past decade, the bank faces regulatory challenges and missteps, including a $250 million fine and racial disparities in loan approvals. This move impacts the US housing market, with rising mortgage costs and economic uncertainty. Competitors like Rocket Mortgage are gaining market share, indicating a shift in how Americans buy homes.

How might the changes at Wells Fargo affect the US housing market?

What does the term 'financial disintermediation' refer to in the context of the mortgage market?