JPMorgan, Wells Fargo lose share to small rivals JPMorgan With Wells Fargo Lose Share To Small Rivals
One way Wells Fargo is trying to maintain volume is by creating a 400-person underwriting team to originate and hold home loans. The bank is training the group as a way to increase lending without losing control of quality, Brad Blackwell, head of portfolio lending for the San Francisco-based lender, said last year.
Profit at the company also rose 10 percent for the quarter from the year earlier period, as Wells Fargo cut expenses and had one-time gains. The shares rose 1.5 percent to $46.28 today and have risen 35 percent since the end of 2012.
Market-share declines are to be expected as the cycle turns, according to Nancy Bush, a bank analyst who founded NAB Research LLC in New Jersey.
"The greater the market share you had in re-fi, the more you have been punished and that's what happened to Wells Fargo," Bush said in a phone interview. "To me, it's natural."