Both JPMorgan Chase and Wells Fargo reported declines in first-quarter mortgage application volumes.
JPMorgan (JPM) saw its application volume drop 8%, while the bank’s origination volume ticked up 3%.
Meanwhile, Wells Fargo’s (WFC) application volume declined 8%, while originations fell a much steeper 13%, according to new analysis from Compass Point Research & Trading.
The Mortgage Bankers Association previously forecasted slight growth in JPMorgan’s origination volume due to data studied before the Compass Point report.
Wells Fargo, on the other hand, saw a sharp drop in originations as correspondent lending activity declined.
Wells Fargo blamed an increase in competition, instead of a strategic pullback, for the drop in correspondent activity, Compass Point added.
As a whole, origination volumes are predicted to stay strong this quarter, with sustained volumes confirmed by the MBA application index, the same research firm asserted.
