Stocks move after hours: Wells Fargo, Franchise Group

Wells Fargo (WFC)

Wells Fargo announced that it would create a more focused home loan business. The bank’s decision comes amid a stagnant housing market. Mortgage rates above 6.5% have dampened lending for home purchases and refinancing deals. Residential mortgages are an industry in which Wells Fargo has been a dominant player.

“Mortgage is an important relationship product, and our goal is to continue to be the primary mortgage lender for Wells Fargo bank customers as well as minority homebuyers. We are making the decision to continue to reduce risk in the mortgage industry by reducing its size and tightening its scope,” Kleber Santos, CEO of Consumer Lending said in a press release.

franchise group (FRG)

The Vitamin Shoppe owner plans to go private via a management buyout, according to a Wall Street Journal report.

Franchise Group shares were halted minutes before market close on Tuesday after hitting $30.13 per share. According to the report, management could pay between $30 and $35 per share if a deal goes through.

The company is separately considering acquiring Conn’s Inc., a furniture chain. Besides Vitamin Shoppe, Franchise Group owns mattress supplier American Freight and Pet Supplies Plus.

Ines is a senior economics reporter for Yahoo Finance. Follow her on Twitter at @ines_ferre

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