Banks Find Record Profits From Mortgages
Daily Real Estate News | Tuesday, October 16, 2012
As interest rates have fallen, mortgage applications have soared. Wells Fargo, the largest lender in the nation by a large margin, netted $139 billion in mortgages in the three months ending in September, up from $50 billion a year earlier.
However, banking officials and analysts are concerned the higher profits aren’t sustainable.
“We don’t expect to count on high margins and mortgage origination forever,” says J.P. Morgan Chief Executive Jamie Dimon. Dimon adds that the surge in refinancing will likely continue for the next “couple of quarters but it won’t last much longer.”
Source: “Mortgage Boom Leads to Profit Surge for JPMorgan, Wells,” Reuters (Oct. 12, 2012)