The forecast for total home loan production this year looks grim, Bloomberg News reports, citing information gleaned from Wednesday’s investor conference in New York.
Total home production this year could be the lowest since the 1990s, PNC Financial Services Group Inc. (PNC) CEO Bill Demchak said at the conference, as reported by Bloomberg.
“It’s going to be a real tough year in origination,” Chief Executive Officer Bill Demchak said. “You’re going to see it shake out a number of players at the margin because there is quite clearly much more capacity in the market right now than there is people who want mortgages.”
Wells Fargo & Co. and JPMorgan Chase & Co. are also struggling “for pieces of a shrinking mortgage market as demand for home loans declines and investors and cash buyers dominate some sales,” Bloomberg reports, adding that mortgage revenue plunged 42% at JPMorgan in the first quarter as higher interest rates curtailed refinancing, while Wells Fargo reported a 46% drop in mortgage banking income during the period.
Written by Cassandra Dowell