Categorized | Finance and Mortgage

Wells Fargo Makes One-Third of Mortgages in the United States

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As other banks and lenders continue to pull out of the mortgage loan market, Wells Fargo has reaped the benefits. The major lender made more than thirty-three percent of all the United States mortgages in the first quarter of 2012. Its next closest competitor was JPMorgan Chase, which made only ten percent of mortgages.

 

Wells Fargo and US Bancorp saw strong increases in their mortgage loan lending division, whereas Bank of America, JPMorgan Chase, and Citigroup all saw their mortgage lending numbers decrease. It is clear in the first quarter results that each of the lenders is taking a different strategy with respect to the mortgage loan market.

 

While the total number of mortgage originations in the first quarter of 2012 was down from the fourth quarter, it was a strong increase from one year earlier. The CFO of Wells Fargo has made it clear that they see a lot of opportunity in the mortgage loan market, and plan to continue pursuing an increased share of the industry. The CEO of US Bancorp shared the same sentiments, and has made it clear that they plan to become a major factor in the industry.

 

Other lenders, such as Bank of America, are pulling back from the mortgage loan industry, largely due to the number of lawsuits that they have faced in the past few years. Bank of America was one of the major lenders targeted in the robosigning lawsuit. As a result of that lawsuit, they have faced significant losses to their bottom line, and have had no choice but to pull back from the market.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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