Wells Fargo's mortgage banking business is starting to show signs of weakening, a potentially worrisome trend for the U.S. housing industry.
Total mortgage banking income at the nation’s biggest mortgage originator slips 3% to $2.8 billion from the year earlier period.
Income from servicing loans was down 42% to $393 million, in part due to the bank’s recent sales of mortgage-servicing rights over the last year.
Meanwhile, the refinancing boom that helped bolster home-loan income in previous quarters has clearly taken a hit. Refinances as a percentage of applications were 54% in the second quarter, down from 69% in the year earlier period.
Total mortgage applications were down nearly 30% from the year earlier period.
