Wells Fargo Corp., the largest U.S. mortgage lender, is not charging late fees on borrowers who missed payment deadlines in deference to the 16-day government shutdown from October 1-16, the bank said.
The bank declined to say how much it collects in late charges in an average month.
The San Francisco-based company processes the paperwork on an estimated 12 million loans, and assesses late fees according to the size of the loan and its interest rate.
A typical late charge on a $200,000 20-year mortgage with a 3.3% interest rate would be approximately $24, according to a statement reviewed by Reuters.
Wells dominates the U.S. mortgage business, although its lending and servicing portfolios are getting smaller. The bank made $80 billion in home loans last quarter, down from $139 billion a year earlier as mortgage refinancings fell because of rising long-term interest rates.
The bank said on October 17 that it is cutting 925 mortgage jobs as a result of slower activity.