According to Seeking Alpha, Wells Fargo’s (WF) efforts in overcoming the recent dip in mortgage refinancing activity has offset the decline with lower expenses and reserve releases.
Seeking Alpha explains:
Wells has been busy cutting expenses in its mortgage operation – employment ramped up by 10K to about 18K in the two years ending in Q1, but declined in Q2. Nearly another 3K cuts have been announced thus far in Q3.
Also offsetting declining mortgage income in Q3 will be better credit performance – "absent significant deterioration in the economic environment," expect larger reserve releases going forward.
