This is how Wells Fargo and Bank of America fared in Q3
In today’s Daily Download episode, HousingWire covers how Wells Fargo and Bank of America performed in the third quarter of 2020.
For some background on the story, here’s a summary of the article:
Though its earnings were disappointing overall, residential lending at Wells Fargo rebounded in the third quarter, both in terms of income and origination volume.
The bank originated $62 billion in home loans during the third quarter, up 5% from $59 billion in the prior quarter. In the third quarter of 2019, Wells Fargo originated $58 billion in mortgages.
In all, Wells Fargo collected $1.6 billion in income from its residential lending operation, up from $317 million in the prior quarter. Even net servicing income checked in at $341 million, up from a loss of $689 million in Q2.
Its rival Bank of America posted a $2.1 billion profit in the third quarter in its consumer banking division, up massively from the paltry $71 million profit in the second quarter, mortgage origination volume was down dramatically.
Mortgage originations from the bank totaled $13.4 billion in the third quarter, a drop from $23.1 billion in the second quarter and far below the roughly $20 billion benchmark hit in the fourth quarter of 2019.
Following the main story, HousingWire covers JP Morgan Chase as the company recently revealed its mortgage business is getting back to normal following disruptions caused by COVID-19 and the Mortgage Bankers Association’s weekly mortgage applications survey which shows a slight drop in applications despite declines in rates.
The Daily Download examines the most compelling articles reported from the HousingWire newsroom. Each afternoon, we provide our listeners with a deeper look into the stories coming across our newsroom that are helping Move Markets Forward. Hosted by the HW team and produced by Alcynna Lloyd.
HousingWire articles covered in this episode: