Per a MarketWatch story today, on coments made by CFO Howard Watkins at a UBS conference:
Despite the residential housing slowdown, Wells Fargo & Co.’s backlog of new mortgage applications is up 19% this quarter, Chief Financial Officer Howard Atkins said Monday. … Wells Fargo is nevertheless fighting credit issues. Its $28 billion auto loan portfolio still has some issues due to previously low credit standards, and its home equity portfolio is showing “some deterioration” because of declining home values in much of the nation, Atkins said.
“Some deterioration” is usually a far cry from “material deterioration,” if my past experience in financial reporting is any barometer on this. I had actually expected Wells to be hit harder by the subprime downturn, but have yet to see any evidence of it.