Is the mortgage market really back?
The country’s two biggest mortgage lenders, Wells Fargo and JPMorgan Chase, reported Friday that a surge in home lending pushed them to record profits.
JPMorgan CEO Jamie Dimon declared that the housing market “has turned the corner.” Wells Fargo CEO John Stumpf said, “Every quarter, we have more confidence.”
Wells Fargo said it issued $139 billion in mortgages from July through September, compared with $89 billion in the same period last year. JPMorgan wrote $47 billion in mortgages, compared with $37 billion last year.
JPMorgan made $5.3 billion in the third quarter, up 36 percent from the same period a year ago. That worked out to $1.40 a share, blowing away the $1.21 predicted by analysts polled by FactSet, a provider of financial data. Revenue rose 6 percent to $25.9 billion.
Wells Fargo made $4.7 billion in the third quarter, up 23 percent from a year ago. That amounted to 88 cents per share, a penny higher than estimates. Overall revenue rose 8 percent to $21.2 billion, slightly lower than analysts expected.