July 23rd, 2013 11:47 AM by Preston Ware
Wells Fargo #1 recorded $2.21 billion in gains on the sale of new mortgages originated last year
Chase #2 reported profits of 568 million
Some 50% of Wells Fargo’s income comes from noninterest income – income earned from fees and origination, not long-term lending. Of that 50%, 22% came from mortgage origination, brokering, and related fees.
Why am I telling you this? Because I have both of these sources sitting prominently on my pricing engine so I can point your loan towards them if you want. Wells Fargo and Chase are two of the largest servicers in the world. A while back they realized it was sort of a headache to try to conquer every corner of the mortgage lending world by originating the most loans, so nowadays they are the two major players on Wall Street purchasing other loans that companies like mine create.
When you close your loan with the bank that is my employer, we will close the loan in our own name, fund the loan with our own money and later sell the loan on Wall Street to a servicer such as Wells , Chase or another investor. The process is much easier this way.
I like to think of this as the best of both worlds, because we have the pricing of the “big boys”, but we have the world class service of a smaller company with good customer service. Many of my customers come to me frustrated in dealing with these 800 lb guerillas and appreciate good the old fashion customer service that comes with having one contact, (me) as your contact on your file from pre-qual to closing.
There is no transitioning between departments which makes for a much better borrowing experience. I am also available 24/7 unlike these larger lending institutions that still observe bankers hours.