When we reported Wells Fargo's Q3 earnings back in October, we drew readers' attention to one specific line of business, the one we dubbed the bank's "bread and butter", namely mortgage lending, and which as we then reported was "the biggest alarm" because "as a result of rising rates, Wells' residential mortgage applications and pipelines both tumbled, specifically in Q3 Wells' mortgage applications plunged by $10bn from the prior quarter to $73bn, while the mortgage origination pipeline plunged to just $29 billion", and just shy of the post-crisis lows recorded in late 2013.
Fast forward one quarter when what was already a grim situation for Warren Buffett's favorite bank, just got as bad as it has been since the financial crisis for America's largest mortgage lender, because buried deep in its presentation accompanying otherwise unremarkable Q1 results (EPS small beat, revenue small miss), Wells just reported that its 'bread and butter' is virtually gone, and in Q1 the amount in the all-important Wells Fargo Mortgage Application pipeline plunged by a whopping 23% to just $23 billion, and at the lowest level since the financial crisis.
And while Wells' mortgage applications, a less forward looking indicator, was not quite as dire, it too was just shy of fresh post crisis lows at only $63 billion, just barely above the post-crisis low hit one year ago.
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And Jake day talked his church buddies into building new homes in hunters crest to make his growth numbers look better
ReplyDeleteHomes cost to much vs people's wages is why.
ReplyDelete6:43 Only if you have no education and a job that pays low wages.
ReplyDeleteWho doesn't on the Eastern shore..its either one or the other..you must be a doctor lawyer or state employee because everyone else struggles here even buisness owners.
Delete7:25 PM take your snobbish ignorance and place it where the sun dont shine. There is housing available for all economic levels. Jobs here pay crap, no benefits, and there is nothing other than retail and the college.
ReplyDeleteYour ignorant attitude is a big part of the problem in this community.
Wake up and see the reality of your community instead of bashing people.
7:25 PM yea that's why we have a 15+% foreclosure rate and all those high end houses are in the toilet. You're a stupid fool
ReplyDelete6:43 wake up and look around Salisbury where 80% are rentals and you say if you have education you can afford a house? Two wage earners can't afford a home here.
ReplyDelete7:42 Not my community, it's your and it sucks. Keep electing/allowing unqualified people to political positions and being hostile to people that want to open new businesses. You can't fix stupid!
ReplyDelete8:03 Thanks for leaving the most unnecessary comments to grace a thread on this site. Real thought provoking, deep stuff.
DeleteThe only attorneys in this region that are making money are the ones with GOOD PUBLIC reputations. Always ask another attorney....they know the quacks.
ReplyDeleteWages are too low
ReplyDeletePrices are too high
The Federal Reserve is to blame for both problems.