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The current environment is not ideal for earnings growth, says Wells Fargo (WFC -1.7%) CEO John...

The current environment is not ideal for earnings growth, says Wells Fargo (WFC -1.7%) CEO John Stumpf on the earnings call, touting his bank's diversity of revenue streams. Well, mortgage banking accounted for 26% of noninterest income (presentation) in Q1, and if you listen to Jamie Dimon, there's little business left for the banks to squeeze out of the HARP program. For Wells, mortgage profit of $2.8B in Q1 was off 9% sequentially, off 3% Y/Y.
Comments (4)
  • dahanson
    , contributor
    Comments (4) | Send Message
     
    Stumpf, not Stump.
    12 Apr 2013, 10:32 AM Reply Like
  • dividend_growth
    , contributor
    Comments (2878) | Send Message
     
    Big banks have actually tightened their lending standards in recent months despite improving housing market and loan quality. Needless to say, they are missing out on the mortgage business.

     

    Smaller banks and lenders are more aggressive in this regard.

     

    But bank investors must ask: is it really a good time to drop your guard and pile into the mortgage market at record low interest rate environment?
    12 Apr 2013, 12:38 PM Reply Like
  • geoactionJack
    , contributor
    Comment (1) | Send Message
     
    Agreed,I am in the process of applying or a loan I have a 800+ credit rating and vast assets, I cannot believe the hurdles that I have to go though. I feel sorry for the border line borrowers.
    I believe this will hold down the housing market recovery. I expect to see a slowing in the next 3 months.
    14 Apr 2013, 09:06 PM Reply Like
  • Jon10
    , contributor
    Comments (6) | Send Message
     
    I am attempting a refi at Wells Fargo. I use the word "attempting" because of the hoops they are putting me through. Despite a 850 credit rating and lots of equity, they are taking 3 months to get this done. I am sure they are going to low ball the appraisal as well. From my experience, Wells Fargo is not really interested in making new mortgage loans. It's hard to blame them, would you make a 30 fixed rate loan at 3.75%?
    13 Apr 2013, 10:51 AM Reply Like
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