Fundings Fall, Mortgage Holdings Grow at Wells

written by
4 · 21 · 10

Third-party originations led overall activity lower at Wells Fargo Home Mortgage. But its servicing portfolio grew as did its mortgage assets, while delinquency on home-equity loans improved.

Mortgage loan production fell to $76 billion from $94 billion in the fourth-quarter 2009, parent Wells Fargo & Co. reported today. Business was also lower than $101 billion during the first-quarter 2009.

Retail originations fell 16 percent from the fourth quarter to $43 billion, and correspondent and wholesale business tumbled nearly one-fourth to $32 billion. The disparate decline was even more pronounced when compared with the first-quarter 2009 — with retail down 16 percent and third-party volume off more than a third.

An indication of upcoming origination activity, new applications, fell 13 percent from the fourth quarter to $125 billion — though the application pipeline gained 4 percent to end March at $59 billion.

The Des Moines, Idaho-based company’s managed residential servicing portfolio finished last month at $1.798 trillion, rising from $1.796 trillion three months earlier. The March figure included $1.417 trillion in loans serviced for others, $0.371 trillion in loans its owns and $0.010 trillion in subservicing.

Its one- to four-unit first-mortgage holdings were $240.5 billion on March 31, more than $229.5 billion on Dec. 31. Home-equity loan assets rose to $117.4 billion from $115.4 billion.

Delinquency of at least two months on HELs improved to 6.24 percent from the fourth quarter’s 6.74 percent.

Wells noted that it boosted its repurchase reserves to $1.3 billion from $1.0 billion at the end of last year.

The company serviced $564 billion in commercial mortgages as of March 31, less than $569 billion on Dec. 31. Last month’s total reflected $449 billion in loans serviced for others, $105 billion in Well Fargo loans and $10 billion in subservicing.

The commercial real estate portfolio closed out March at $132.4 billion, lower than $134.5 billion at the end of last year.

Wells Fargo & Co. earned $2.5 billion in the first quarter, less than $2.8 billion in the prior period and $3.0 billion the prior year.

Employment at all Wells entities edged up to 267,400 from 267,300 three months earlier.

Mortgage Expert

Mortgage Daily Staff



No Results Found

The page you requested could not be found. Try refining your search, or use the navigation above to locate the post.