According to nationalmortgagenews.com, Wells Fargo executives welcome the effort by Federal Housing Finance Agency Director (FHFA) Mel Watt to expand mortgage credit availability, but caution that capturing the lower-credit quality homebuyer is not likely to increase the size of the mortgage market nor impact earnings of mortgage originators. The nation’s largest mortgage lender reports a 30 percent increase in residential originations in Q2, but no growth in gain-on-sale margins. Wells Fargo Chief Financial Officer John Shrewsberry tells MHProNews, “The second quarter benefited from a seasonally stronger purchase market with 74% of our originations coming from home purchases compared to 66% last quarter.” ##

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