Mortgage has already been decimated this year and with the latest news, the question is how many more will end up on the chopping block? The number will probably be higher than any of us think right now. I guess Charlie is working really hard to justify his 'chainsaw' moniker.
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Lending is no longer one of the bank's core competencies in Charlie's view. The only core competency he sees is improving his own compensation.
I wonder if regulators are taking responsibility when all the Rocket Mortgage loans start going sideways. I'm sure the politicians will be happy when the approvals for blacks and whites are dead on equal, but they're going to have to live will the fall out.
The company getting lean, retaining top talent, and rebuilding our mortgage business to compete with the likes of Rocket etc. is a good idea and now is the perfect time. What we don't want to do is abandon that market, because it's a huge money maker. We have done a recent job in recent years avoiding bad loans, and that's wise, but we shouldn't get out of that business under any circumstances. It's the definition of "core", it's just cyclical.
I see auto finance coming next with supply chain issues and interest rates being what they are. Not a great time to be in consumer lending at all.
Mortgage is a Bo-m and Bust business. I just hope we're keeping enough of the best talent in-house so we have a seed to grow fresh business when the mortgage market pendulum swings our way again.
That's assuming our "leaders" actually want WF to be in the mortgage business. Which is a very good question.......
But what do I know. It's not like I've been doing this for 30 years or anything.