Staying Neutral but Raising the TargetWells Fargo and JPMorgan Chase ( JPM) will kick off earnings season for large-cap U.S. banks on Friday. The consensus among analysts polled by Thomson Reuters is for Wells Fargo to report second-quarter earnings of 92 cents a share, matching the company's results for the first quarter, but increasing from 82 cents a share in the second quarter of 2012. A major concern for Wells Fargo has been the decline in mortgage loan refinancing volume. The company was the dominant U.S. mortgage player during 2012, with a 27.7% share of newly originated loans. Another threat to mortgage revenue is the decline in gains on the sale of newly originated mortgage loans to Fannie Mae and Freddie Mac as interest rates rise.
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