Economy

Demeter

(85,373 posts)

46. Wells Fargo mortgage revenue drops, shares fall

Sun Jul 13, 2014, 01:18 PM

Jul 2014

THOSE WHO LIVE BY THE MORTGAGE UP-FRONT FEES, DIE BY THE MORTGAGE UP-FRONT FEES...

Wells Fargo & Co, the fourth-largest U.S. bank, reported a 39 percent drop in mortgage revenue for the second quarter as lending volume dropped, underscoring the urgency for the bank to find other sources of income growth.

The bank managed to boost earnings and meet analyst estimates through gains from investments in stocks and bonds among other areas. But that income could be difficult to repeat in coming quarters, analysts said.

Meanwhile, the pressure on Wells Fargo's mortgage business, one of its largest sources of revenue for years, is continuing and intense. The bank's shares fell 0.4 percent to $51.58.

Overall U.S. mortgage lending volumes have been falling for 15 months as rates have risen, cutting into demand to refinance home loans. This spring was also a weak home buying season compared with last year's, Chief Financial Officer John Shrewsberry told investors on a conference call.

"The purchase market is softer than we thought it would be," Shrewsberry said.

https://news.yahoo.com/cost-cuts-help-wells-fargo-boost-quarterly-profit-121429313--sector.html

YES INDEED! CAN'T UNSCREW THIS LIGHTBULB!

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