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Wells Fargo’s rapidly shrinking mortgage business

HW-wells-fargo

Wells Fargo this week warned investors the bank’s mortgage business could drop by almost 50% in the second quarter from the prior quarter.

Wells Fargo Chief Financial Officer Mike Santomassimo said higher interest rates have greatly reduced the refinancing market – currently down about 82% from the prior year – and home affordability remains a challenge in the purchase market.

“As you would expect, you’re seeing the refinance volume fall significantly — no surprise,” he said at the Morgan Stanley U.S. Financials, Payments & CRE Conference Tuesday. “You’re still seeing some activity in the purchase details ⇒

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