According to figures compiled by National Mortgage News and the Quarterly Data Report, Wells has an overall origination market share of 30% and a retail share of 24%.
CS analyst Moshe Orenbuch writes in a new research note that “Overall, management was optimistic about the overall positioning of the mortgage business.”
Orenbuch met with Heid, John Gibbons (capital markets chief), Franklin Codel (retail lending), and Michael DeVito, who is in charge of default management servicing.
CS anticipates that mortgage revenues at the nation’s largest lender/servicer “will continue to be solid in 4Q and into mid-2013, benefiting from higher than average gain on sale margins and continued solid origination activity.”
However, CS has a ‘neutral’ rating on the bank with a price target of $37. Wells’ shares have been trading at $32 lately.