Wells Fargo (NYSE:WFC) is expecting the cost of its refinance program to double.
Wells Fargo To Expand Refinancing
The San-Francisco based Wells Fargo (NYSE:WFC) said in a regulatory filing that the bank expects the cost of the Refinance Program to rise to $8 billion from an estimated $4 billion three months ago.
This will reduce the bank’s lifetime interest income by $1.7 billion.
It expects to refinance 40,000 borrowers as part of the $25 billion mortgage settlement with federal agencies.
Wells Fargo (NYSE:WFC) said in a statement, “The estimates exceed the amounts that would result from just meeting our minimum commitments under the program due to the significantly higher than expected response we have received from our customers”.
Wells Fargo (NYSE:WFC) company shares are currently standing at 33.74.