Wells Fargo, the largest provider of mortgages in the U.S. recently announced that mortgage production (the number of mortgages they write) in the 4th quarter of 2013 was down 60% from the year earlier. 60% is certainly an eye popping number and because Wells Fargo has such a large market share, is reasonably indicative of the entire mortgage industry. Because of this, they have cut 50% of their mortgage staff.
The reason for this remains the same, rates are up, refinancing is down. 2010 to 2013 saw an extraordinary refinancing boom with rates continuing to decline due to the economy and the Fed’s quantitative easing program. Most economists expect the purchase business to increase, but regardless the mortgage industry is in for a tough year and many banks/lenders are forced to downsize and adjust to the changing marketplace.
We all knew the historically low rates wouldn’t last forever and this reality is healthy for the industry and the marketplace. For us mortgage professionals it just means we have to focus more on the home purchase financing and this means earning the trust of home buyers.
About the Author ~ Since 2003, Beau has been a mortgage professional and has successfully closed over $100 Million in mortgages. He is the Founder and Senior Mortgage Advisor at Transparent Mortgage and has worked for Luxury Mortgage, Bank of America and Impac Funding. Beau is truly committed to serving the needs of his clients and raising the industry standards for integrity and transparency.
Questions, Comments, or Personalized Rate Quote? Contact Beau today: 619-888-3606 or firstname.lastname@example.org