Wells Fargo Mortgage Business collapsed 28% from fourth quarter of 2013. This is consistent with According to Black Knight, monthly origination volume was the lowest on record and down 23% month-over-month we wrote about before. Further, this should not come as a surprise to the readers of this blog. I have been predicting that the overall Real Estate market is completing it’s “Dead Cat Bounce” and initiating it’s roll over process. What comes next is fairly easy to predict and position yourself for. You can read more about it here….Real Estate Collapse 2.0 Why, How & When

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Wells Fargo (WFC) reported record net income of $5.9 billion, up 14%, or $1.05 per diluted common share, for first quarter 2014, around expectations.

That’s up from $5.2 billion, or $0.92 per share, for first quarter 2013, and up from $5.6 billion, or $1.00 per share, for fourth quarter 2013.

The bank reports far fewer mortgage originations and much more profit on mortgage servicing rights.

During the first quarter, residential mortgage originations were $36 billion, down from $50 billion in fourth quarter 2013 while the gain on sale margin was 1.61%, compared with 1.77% in the fourth quarter.

Net mortgage servicing rights results were $407 million, compared with $266 million in fourth quarter 2013.

“First quarter 2014 earnings were another record for our company and capital levels continued to strengthen,” said CEO John Stumpf.

Total loans were $826.4 billion, up $4.2 billion from last quarter.

Growth in commercial and industrial, commercial real estate, auto and 1-4 family first mortgage more than offset the decline in junior lien mortgages and a seasonal decline in credit card loans, said the company.

“Credit performance was strong in the first quarter as losses remained at historically low levels, nonperforming assets continued to decrease and we continued to originate high quality loans,” said Chief Risk Officer Mike Loughlin.

Loughlin added nonperforming assets declined by $840 million, or 17% (annualized) from last quarter.