Wells Will Retain Mortgages for Portfolio, Hires 2,000

Published October 12, 2012, 2:39 p.m. EDT

Updated October 12, 2012, 2:45 p.m. EDT

1 Min Read

Wells Fargo said Friday it has decided it can generate higher yields by retaining high quality mortgages on its books rather than purchasing MBS at a premium.

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As part of its earnings release, the megabank disclosed that it retained $9.8 billion of newly originated mortgages for its investment portfolio. If the loans had been sold, it would have generated $200 million of additional gain-on-sale revenue.

Despite the maneuver, Wells Fargo still reported $2.6 billion of GOS for 3Q, an increase of $396 million from the second quarter.

Wells Fargo also hired 2,000 full-time employees in the second quarter to keep up with its growing pipeline of mortgage applications. Company officials on Friday declined to disclosure the number of new mortgage employees hired in the third quarter.

Brian Collins

Reporter

Brian Collins covers the housing and mortgage market, including the Federal Housing Administration and the Department of Housing and Urban... Read full bio

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