Wells Fargo & Co., the nation’s largest residential originator, funded $64 billion of new home loans in the second quarter, a 31% decline from 1Q and a sign that mortgage bankers are in for some tough sledding in the months ahead.
However, there was a hint of positive news on the origination front: its pipeline of unclosed mortgages totaled $51 billion at the end of June, compared to $45 billion at the end of March.
Wells’ mortgage banking division, Wells Fargo Home Mortgage, posted non interest income of $1.6 billion in the quarter, down $397 million from 1Q.
The bank registered mortgage servicing rights gains of $347 million in 2Q compared to $379 million in the prior quarter.
Wells showed improvements in residential charge-offs, taking $2.8 billion of hits, compared to $3.2 billion in 1Q.
