This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Wells Fargo Is Beating Us in Mortgages, Dimon Tells Cramer

NEW YORK ( TheStreet) -- JPMorgan Chase (JPM - Get Report) CEO James Dimon in an interview on CNBC with Jim Cramer on Friday expressed confidence that the New York banking giant could compete in the mortgage business with Wells Fargo.

Cramer pointed out that Wells Fargo's second-quarter mortgage revenue held up from the previous quarter, while JPMorgan saw a "7% origination decline."

Cramer added "Wells is not seeing those numbers."

JPMorgan reported a 7% drop in mortgage originations from the previous quarter to $49 billion as interest rates rates rose, while Wells Fargo still managed a slight 3% increase to $112 billion.

JPMorgan said the sharp rise in interest rates had hurt refinancing volume more than expected. If rates stay at this level or move higher, the refinance market could fall by 30% to 40%, CFO Marianne Lake told analysts during the conference call following results.

While the purchase market was still doing well, it was unlikely to offset the decline in refinancing.

Referring to Wells Fargo CEO John Stumpf, Cramer asked Dimon "Is he just out-mortgaging you?"

Dimon said "Yes he is. I love John Stumpf, they do a better job in the mortgage business than us," but added that following the acquisitions of Bear Stearns and the failed Washington Mutual, "our systems weren't great." Dimon went on to say "we have a new management team in place, and at the end of the day we're going to have a great mortgage business."

"We believe like John that it is an important product. We are really good at production, we are really good at servicing, we just have more wood to chop than he does."

"We've gone from 9% to 10% to 11%" mortgage market share, Dimon said, adding that "I think you'll see our share go up over time."

When Cramer asked about anemic small business lending, even in light of Federal Reserve Chairman Ben Bernanke "doing everything he can" Dimon said "small business will recover with the economy. When the economy starts to grow, you're going to see small businesses take off, and their credit needs grow."

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
WFC $54.84 0.04%
JPM $62.00 -0.21%
AAPL $126.41 -1.66%
FB $81.21 0.39%
GOOG $575.33 0.34%


DOW 18,135.72 +38.82 0.21%
S&P 500 2,101.04 +2.51 0.12%
NASDAQ 4,982.8090 +15.6680 0.32%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs