Wells Fargo & Co WFC Shares rose in Tuesday’s after-hours session after the company announced strategic plans to create more focus Home Loan Business.

What you should know: Well Fargo announced that it is exiting its correspondence business and plans to reduce the size of its services portfolio to reduce risk in its mortgage business. The company’s new plans focus on serving banking customers and individuals and families in minority communities.

“We are making the decision to continue to de-risk the mortgage business by reducing its size and narrowing its focus. As the largest bank lender to Black and Hispanic families over the past decade, we remain strongly committed to advancing racial equity in home ownership. ” said Glue SantosCEO of Wells Fargo’s consumer credit business.

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In addition to the company’s narrowed focus on mortgagesWells Fargo also plans to streamline its retail team to focus primarily on bank customers and underserved communities, invest $100 million to promote racial equity in home ownership, and deploy additional mortgage advisors in minority communities.

Wells Fargo also plans to expand its existing $150 million investment from its special-purpose lending program to purchase loans. The investment is designed to help reduce costs for those in underserved communities looking to refinance or buy a home.

Wells Fargo said its new approach offers flexibility to respond to customer needs more quickly.

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Wells Fargo is expected to report its fourth quarter results on January 13th. The bank is expected to post fourth-quarter earnings of 64 cents per share on quarterly revenue of $19.98 billion Gasoline Pro.

WFC Price Promotion: Wells Fargo has a 52-week high of $60.30 and a…