$113 billion 4th quarter production
By MortgageDaily.com staff
1/17/2006

Wells Fargo & Co. pushed quarterly fundings to the highest level this year, while annual volume was the second-highest ever.

Fourth quarter originations of $113 billion grew $10 billion from the previous three-month period and $44 billion above the level a year earlier, according to Wells' earnings announcement today.

The San Francisco-based banking behemoth's 2005 volume of $366 billion was reportedly $68 billion better than the prior year, but short of its $470 billion record achieved in 2003.

Correspondent and wholesale loans accounted for 57% of the fourth quarter's fundings, retail loans about 30%, home equity lending 11% and the rest came from Wells Fargo Financial, its subprime-lending arm. The retail volume fell from the third quarter, while the subprime business's production was flat at $3 billion -- the total reported every quarter in 2005.

"We continue to be #1 in many categories nationally, including retail mortgage originations [and] home equity lending," said Chairman and CEO Dick Kovacevich in the statement.

Home equity loans and lines jumped 20% from the third quarter to $12 billion and boosted the 2005 total to $39 billion -- which Wells said represented the top market share in this category for the fourth consecutive year.

The mortgage servicing portfolio grew about 6% during the quarter to surpass $1 trillion as of Dec. 31, according to the announcement. The weighted average note rate for its owned loans was 5.72%.

Wells said its pipeline of applications fell $16 billion from the third quarter to $50 billion.

The lender announced annual net income rose 9% from 2004 to a record $7.7 billion.

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