The mortgage business is a top source of revenue for banks, and mega bank Wells Fargo is no exception.
Wells Fargo ($40.55 -0.7%) CEO and President John Stumpf presented at the Sanford C. Bernstein Strategic Decisions Conference on Wednesday discussing the overall health of the bank.
Stumpf said the culture of our company and the way we do business is about serving customers. “We work together. And if it’s not mortgage – its mortgage today, it might be credit card tomorrow.”
“It might not be an even tradeoff and might not be a quarter-by-quarter tradeoff, but if we provide great services and products, the rest seems to take care of itself,” he added.
However, Wells Fargo may adapt for the customer, but the bank’s revenue tells a slightly different story.
Mortgage is an important business, the CEO explained. “We love the mortgage business. For two-thirds of Americans, it is still the biggest asset purchase they’ll ever do. It is part of the way Americans save and it changes families.”
Despite the bank saying it will follow the customer, the bank shows no signs of backing away from mortgages anytime in the near future.
“To be in the consumer business, we think you have to be in the mortgage business. We like it that we love that business, but we also love the other 89 businesses we are in,” Stumpf said.