NEW YORK (TheStreet) -- Shares of Wells Fargo & Co. (WFC) are up 0.70% to $50.40 after the bank said it relaxed its standards for loans for some high-priced homes as the largest U.S. mortgage lender tries to combat an industry-wide drop in mortgage volumes, Reuters reports.
The bank eased its lending standards on mortgages it acquires from other banks, according to a spokesman, for "jumbo" loans that are too large to receive a guarantee from government-backed mortgage companies.
In late July, the bank lowered the minimum credit score on these fixed-rate jumbo mortgages to 700 from 720, the bank said.
Credit scores are between 300 and 850, and levels below 640 are often considered subprime.
"We rate WELLS FARGO & CO (WFC) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."