Wells Fargo Shares Fall Amid Revenue Drop

wellsfargo (picture from the Wells Fargo in Nashville, TN)

Wells Fargo, which is one of the largest U.S. banks, reported a huge drop in revenue in the second quarter of 2014. The drop was a large 39% which has caused their shares to fall in price. All of this is caused by their total lending volume which has dropped.

The bank now needs to find an alternative source of income to get their revenues up. This news comes as news in other areas of the company were good. They showed an increase in bonds and stocks.

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This puts an extremely urgent sense of pressure on the mortgage side of their business. For many years this has been their number source of revenue. The MBA or Mortgage Bankers Association said Wells Fargo had a larger than average drop when compared to the other mortgage lenders numbers. Although the spring season was a weak season for home loans, their loss was larger.

This news also made their stocks fall .4% to only $51.58 per share price.

The home purchase market has been softer than anyone anticipated. The total volume of loans has declined for the past 20 months. That, along with the rise in interest rates, has caused a weak market.

This was out of the norm for a company like Wells Fargo. For the past 17 quarters, or since 2009, they have shown an increase in revenues. We will be watching closely to see how the company responds in the next quarter.

Christian

Christian

Christian Calvin mortgage Christian is a contributing writer for Mortgage.info. He is a graduate from the University of Tennessee with a degree in Communications and a concentration in Broadcasting. Christian has served as vice-president for a privately-held company for more than 20 years. Additionally, he has also applied his writing and business knowledge to various websites with a focus on business and sports news . . . both of which are passions. Christian enjoys playing golf and spending time with his family and friends.

Contact: christian@mortgage.info
Christian

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