Quarterly residential loan originations might have reached their peak at Wells Fargo & Co. since third-quarter indicators point to a slump in upcoming loan production.
For the three months ended June, the lender’s second-quarter earnings data showed $62 billion in mortgage closings.
Wells Fargo’s home loan volume forged ahead of the $49 billion originated in the previous quarter.
As well, recent mortgage production was stronger than the second-quarter 2014 total of $47 billion.
The 46 percent refinance share was down from 55 percent in the first quarter.
Second-quarter volume included $36 billion in retail originations, while correspondent lenders originated $25 billion, and home-equity loans and home-equity lines of credit accounted for $1 billion of mortgage activity.
In total, Wells Fargo funded $111 billion in mortgages and HELs for the first six months this year.
With $81 billion in loan applications received for the three months ended June 30 dropping from $93 billion in the first quarter, Wells Fargo could have a sluggish third quarter.
In the unclosed pipeline, new applications dipped to $38 billion as of June 30 from just $44 billion as of the end of March.
As of the final day last month, the financial institution’s primary residential servicing portfolio came to $1.691 trillion, a decline from the $1.718 trillion reported as of March 31 and the $1.792 trillion portfolio as of the end of the second-quarter 2014.
The latest amount accounted for $1.344 trillion in third-party servicing and $0.347 trillion in investment loans.
An additional $0.005 trillion was from sub-servicing as of mid-year.
The financial institution’s owned residential assets came to $324.032 billion as of the June’s final day. This part of the balance sheet grew from $323.052 billion as of March 31 and $322.601 billion as of June 30 last year.
The latest residential asset amount included $267.868 billion in one-to-four-unit first mortgages and $56.164 billion in junior liens.
Commercial mortgage servicing increased to $585 billion from $573 billion three months earlier and $538 billion twelve months earlier. Of the recent amount, third-party servicing came to $465 billion, while owned loans made up $120 billion.
Wells Fargo sub-serviced $7 billion in commercial real estate loans.
As of June 30, CRE assets rose to $141.004 billion from $131.829 billion as of March 31 and $130.836 billion as of June 30 a year prior.
The latest CRE total included $119.695 billion in commercial mortgages and $21.309 billion in construction loans.
Altogether, the San Francisco-based company’s mortgage banking business earned $1.705 billion in the three months ending June. Recent mortgage banking income pushed ahead of the $1.547 billion earned in the first three months of this year but slipped from last year’s second-quarter tally of $1.723 billion.
Prior to income tax expense, holding-company Wells Fargo & Co. increased its income to $8.5 billion from $8.2 billion in the prior three-month period but was off from $8.7 billion last year in the second quarter.
Company-wide, Wells Fargo accounted for a 265,800 staff, 200 fewer employees than counted at the end of March and down from the 263,500 reported as of June 30 a year prior.
Wells Fargo listed 8,700 locations.
