Stocks moving after hours: Wells Fargo, Franchise Group

Wells Fargo (WFC)

Wells Fargo announced it will create a more focused home lending business. The bank’s move comes amid with a stagnant housing market. Mortgage rates above 6.5% have put a damper on lending for property purchases and refinance agreements. Home mortgages is 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 to Wells Fargo bank customers as well as minority homebuyers. We are making the decision to continue to reduce risk in the mortgage business by reducing its size and narrowing its focus,” said Kleber Santos, CEO of Consumer Lending in a press release.

Franchise Group (FRG)

The owner of the Vitamin Shoppe is considering going private via a management buyout, according to a report from The Wall Street Journal.

Shares of Franchise Group were halted minutes before the market closed on Tuesday after spiking to $30.13 per share. According to the report, management could pay between $30-$35 a share if a deal comes to pass.

The company is separately mulling the acquisition of Conn’s Inc., a furniture chain. Apart from the Vitamin Shoppe, Franchise Group owns mattress supplier American Freight and Pet Supplies Plus.

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

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