By Saibus Research:JP Morgan Chase (JPM) and Wells Fargo (WFC) reported record profits in their third quarter earnings from increased volumes of lending. As the housing market has slowly recovered, these two nation-wide mortgage lenders have "banked" in on the opportunity.
Top US bank Wells Fargo is to pay $175 million to resolve allegations that it charged African-American and Hispanic borrowers higher fees and interest rates than whites, the Justice Department said Thursday.The bank is accused of engaging "in a pattern or practice of discrimination against qualified African-American and Hispanic borrowers in its mortgage lending from 2004 through 2009."Customers were also steered toward riskier sub-prime loans, while their white peers received standard loan terms, according to the Justice Department.
By Income Hunter:Wells Fargo (WFC) did the investment community a great service in May by hosting an investor conference for its shareholders. This investor presentation covered all aspects of Wells Fargo's business, covering hundreds of pages of texts and graphs.
The recent increase in 30 year fixed home mortgage rates in the U.S. seems to have created ripples in the mortgage industry. Mortgage applications decreased 2% in the week ended April 1, according to the Mortgage Bankers Association’s index.
By David Zanoni:If you are going to own a bank, it would be wise to own one that is one of Warren Buffett's largest holdings. Wells Fargo (WFC) is Buffett's third-largest holding, comprising about 16% of the Berkshire Hathaway (BRK.A) portfolio. This $180.73 billion large-cap banking company is back in vogue as the stock climbed from $24 late last year up to the current price of $34.