Wells Fargo Curbs HARP Mortgages as New Rule Causes Hiccup

Wells Fargo & Co. has suspended refinancing of home loans under a federal program designed to benefit distressed borrowers as the largest U.S. mortgage lender works to ensure compliance with new government standards.

The bank halted offering federal Home Affordable Refinance Program (HARP) loans and some renovation mortgages this month, according to a person with knowledge of Wells Fargo’s policies.

“Certain complicated requirements and specific issues make it more challenging under new disclosure rules,” said Tom Goyda, a Wells Fargo spokesman, who confirmed that the bank has suspended a small portion of its mortgage-originations business. He declined to comment on ...