Wells Fargo & Co. reported strong earnings from its mortgage banking operation in the first quarter with residential originations more than doubling from a year ago and non-interest income climbing 42%.
The nation's largest lender and servicer originated $129 billion of single-family loans in 1Q, compared to $54 billion a year ago. In 4Q it funded $120 billion of home mortgages with a market share of 27%, according to figures compiled by National Mortgage News and the Quarterly Data Report.
Moreover, it appears the San Francisco-based financial services giant has capitalized on Bank of America's exit from the wholesale and correspondent channels. Wells Fargo purchased $68 billion of loans through its correspondent/wholesale channel in the first quarter – double of what it purchased a year ago.
Retail originations totaled $61 billion, a 25% improvement from a year ago.
Overall, Wells Fargo reported $2.9 billion of non-interest income from its mortgage banking group, a 21% jump from the fourth quarter and up 42% from a year ago.