Hadn't read a lot of news, just a few articles. This one today in the LA Times really caught my eye and prompted me to say ..... aloud, albeit to myself...."Hmmmm, very interesting...."
Bank of America is struggling, they used to be the ginormous of mortgage bankers. Countrywide acquisition surely has been a challenging component. The ROBO signing settlement has most certainly caused some distress as well. And, let's face it....since they were the big dog for so long....they have a lot of making up to do.
Wells Fargo, on the other hand, is kicking some serious butt!!!
They originated $130.4 billion new mortgages in the first quarter of this year! 51.8% increase over same time last year. And, that is 34 % of all new home loans.
Chase came in 2nd
U.S.Bancorp was 3rd
B of A down at 4th.
The supposition is that WF cut fees to get more loans. Well, aren't they the wise ones? Let's face it, get some more loans on the books ASAP, good ones, ones that won't default, and earn some interest on those loans right away! Hell, if it takes a little loss up front to earn big money down the line, sounds like they made some good choices.
It is worrisome to the Federal Regulators.....I suppose it should be.....but, WF has made a wise business decision and will reap the rewards as they should.
Make a wise business decision, a little gutsy, and get paid. The good old American way,....right?