Wells Fargo mortgage banking income sinks

by Ryan Smith17 Jul 2017
Wells Fargo saw its mortgage banking income plummet in the second quarter, according to an earnings statement released Friday.

The banking giant saw a 19% year-over-year drop in its mortgage banking income. Wells Fargo reported $1.15 billion from mortgage banking, down from $1.41 billion in the second quarter of 2016, HousingWire reported.

The dip in mortgage banking income was unsurprising, as the market had predicted a drop in mortgage originations, HousingWire reported. Wells Fargo’s overall revenue increased slightly despite the drop, rising to $22.2 billion from the first quarter’s $22 billion.

Wells Fargo has had a rough few months. A fake-accounts scandal last year resulted in massive fines, internal investigations and the ouster of then-CEO John Stumpf. The fallout from that scandal continues; recently, Sen. Elizabeth Warren (D-Mass.) asked the Federal Reserve Board of Governors to remove a dozen members of the bank’s board. The bank has also been accused of making unauthorized changes to mortgage loans.

Wells Fargo CEO Tim Sloan said in the earnings report that the bank is still working to rebuild its reputation after a scandal-plagued 2016.

“We continued to make progress this quarter in our efforts to rebuild trust and build a better Wells Fargo and, while there is still more work ahead of us, we are on the right track and I am confident about our future,” Sloan said.

Related stories:
Wells Fargo accused of making unauthorized changes to mortgages
Wells Fargo agrees to fully compensate all victims of fake-account scandal


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