This rumor has been circulating for a while, let's consolidate what we know in this thread
19 replies (most recent on top)
I think this is just fear mongering. Here's what I know - They hired in a new executive Kristy F 2 years ago to overhaul the home lending business. All levels of management were shuffled and some are still in the process of retiring/bring replaced with new hires. Totally re-designed the national sales model and how applications flow to the various operations teams that process, underwrite, and close loans. They are spending lots of money to design a completely new proprietary loan origination system (Northstar) to replace the prior proprietary loan origination system (CORE). The mortgage business has been increasing its market share & profitability in some key high volume markets such as Bay Area purchase and NYC co-ops. In the last 2-3 years I've seen WF attract several high producing loan officers from other banks (at least 7 in my region easily making over $1 million a year in commission).
Sell Mortgage as the interest rates are about to start going back up again? I seriously doubt it.
Next rumor.
WF is looking to sell checking and savings account business.
No way. Mortgage + Home equity are core businesses/products in the bank.
Why they sell mortgage? That would also suggest that the banking pieces would be useless to have.
WFA would go before mortgage does.
They are literally bringing in a new platform for loan originations. Mortgage isn't getting sold.
Reading these comments… what a joke. You have never worked on selling a business in your life. I am sitting here laughing at the ignorance.
Home lending and commercial lending make sense to sell right now...
Market on both is crashing..in spite of what people are trying to tell you...
Commercial leases 9 months out tell a story of death spiral...
Dump both now while you can get any money for them...
GM did the same thing around 20 years ago and it brought them around
I've been hearing this for two years but I can't understand why or how that is part of tye long term strategy. Maybe they'll stop originating loans but still service them?
Head of home lending has 40k total team…
@nqe+1eKx1UXF
10K? You think Mortgage has 10k employees? Double that. Mortgage is pushing 20k. There is easily 10k in just IA and MN alone.
NOPE. Wont ever happen. Its one of the biggest pieces of our portfolio. If Mortgage goes, the bank may as well shut its doors.
Everything has a price plus there goes 10k in headcount.
Its very possible that portions of the mortgage portfolio are sold off to smaller companies in a structured deal.
That's a fundamental piece of business, that's a akin to saying we're not going to have saving accounts. The very idea is ridiculous. Mortgage volume is going to dry up a bit over the next couple years as refi volume tanks with rates rising, but that happens every cycle.
WF would only sell LOBs that are not profitable, risk/reward isn't there, etc.
Home Lending is neither of those. It's not going anywhere, and that's a good thing.
Seriously doubt it. The loan portfolio is massive, few parties out there are in a position to buy. That said, I love some good gossip, what's the best piece of evidence that this actually is happening?
I hope this happens.
We had a lengthy discussion on this a few days ago - I think this (selling mortgage) will NEVER happen. I have a poor forecasting record tough, so take my words with a grain of salt.
Anyhow, here is that discussion:
https://www.thelayoff.com/t/1eDMiIpE
or linked @OP+1eDMiIpE