Wells Fargo Just Reported The Worst Mortgage Number Since The Financial Crisis

Wells Fargo Just Reported The Worst Mortgage Number Since The Financial Crisis

When we reported Wells Fargo’s Q3 earnings back in October, we drew readers’ attention to one specific line of business, the one we dubbed the bank’s “bread and butter“, namely mortgage lending, and which as we then reported was “the biggest alarm” because “as a result of rising rates, Wells’ residential mortgage applications and pipelines both tumbled, specifically in Q3 Wells’ mortgage applications plunged by $10bn from the prior quarter to $73bn, while the mortgage origination pipeline plunged to just $29 billion”, and just shy of the post-crisis lows recorded in late 2013.

Fast forward one quarter when what was already a grim situation for Warren Buffett’s favorite bank, just got as bad as it has been since the financial crisis for America’s largest mortgage lender, because buried deep in its presentation accompanying otherwise unremarkable Q1 results (EPS small beat, revenue small miss), Wells just reported that its ‘bread and butter’ is virtually gone, and in Q1 the amount in the all-important Wells Fargo Mortgage Application pipeline plunged by a whopping 23% to just $23 billion, and at the lowest level since the financial crisis.

And while Wells’ mortgage applications, a less forward looking indicator, was not quite as dire, it too was just shy of fresh post crisis lows at only $63 billion, just barely above the post-crisis low hit one year ago.

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5 Responses to “Wells Fargo Just Reported The Worst Mortgage Number Since The Financial Crisis”
  1. JoAnn Kennedy says:

    Bank of America has reported similar and yesterday the Cruz, reported that Fannie and Freedie Mac are almost broke hmmm

  2. Marc Gerstein says:

    Waaah…this just a taste of what is gonna happen to this garbage Corp

  3. Nunia Buziness says:

    Bwaaaha…..DIE asshole thieves!!! Ha, knew it was coming..!!!!!

  4. Memphis Appraiser says:

    Real Estate sales are typically local. There is almost zero inventory in affordable housing in Memphis. Companies like Wells Fargo made a lot of predatory loans here and were legally liable. These loans and distressed homes STILL impact the local market. They are being marketed globally as investment products to real estate investors. Blocks of REOs distressed housing are purchased, resold to property management companies who buy wholesale multi-parcels, renovate, rent prior to re-marketing globally to investors, typically for cash. They decline showings or sales to individuals seeking owner occupancy. The rental market dominates purchases. Mortgage loans take a backseat to cash investors. In fact, property managers sell a package deal to a global buyer with complete renovation, rental management, inspections, etc. All the investment property owner does is read the bottom line report online. The buyer seldom if ever sees the property. This ends in high rents as the dominant market in Memphis. High end sales are not impacted but in general Inventory is low or depleted..
    Demand is here. Houses and mortgages are not available.

  5. bollivar4 says:

    One criminal empire down, many more to go. Bank of America’s criminal empire should be targeted for demolition by force.

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