Chillin' out till it needs to be funded
Jamie Dimon / Frank Bisignano’s $38.4 bln book in originated mortgages in 3 months and Stumpf ‘s $120 bln in mortgages in the quarter count for something as the no. of applications jumped 84% in Q1 at Wells and 33% at Chase. That number firmly gives Wells Fargo the impetus to move in on its advantage with the loan book evenly split $340 bln in retail and $320 bln in commercial lending. Most of the coming tide in foreclosures will hit the balance sheet in 2013 as the settlement in 49 states actions the applications at hand.
However, Stumpf may have to steer clear of allies like Egan Jones who have proceeded to downgrade JP Morgan as dealbook mentions Wells Fargo enjoys a 2.6% cost of borrowing compared to Jamie Dimon’s 2.71% while the FT and others repurpose their writing guns to boost the coming mortgage /housing recovery on results day
Stumpf took time in his conference to point to the rising gap between rentals and loan EMIs , nearly $300 as the change from rentals to home ownership is yet to happen. Dimon took time to note that consumer households are back to their Debt / income ratio of 20 years ago in the weak jobs economy
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