Wells Fargo, which counts Berkshire Hathaway as its largest
shareholder, created one of every three U.S. mortgages in the first quarter and
may seek to boost market share to 40 percent. The company said today that the
number of applications set a new quarterly high during the most recent three
months.
Wells did the best job of the big players in the mortgage
market and therefore they’ve garnered a share as the other fellows have fallen
by the wayside,” said Buffett, 81, whose firm holds more than 7 percent of the
common stock, according to data compiled by Bloomberg.
Wells Fargo, run by CEO John Stumpf, 58, received $208
billion in mortgage applications in the second quarter and completed $131 billion
in originations. The pipeline of unclosed loans stood at $102 billion at the
end of June.
Buffett, who has added to his Wells Fargo investment, is
betting on a housing-market recovery.
No comments:
Post a Comment