Analyst: Wells Fargo's 34% mortgage share troubles regulators

http://www.latimes.com/business/money/fi-mo-wells-fargo-mortgages-20120503,0,4274916.story


Has Wells Fargo Home Loans grown uncomfortably large amid concerns over too-big-to-fail banks?

The Wells Fargo & Co. unit has become so dominant in the mortgage business that federal regulators are worried, according to veteran analyst Paul J. Miller of FBR Capital Markets.

"The government is concerned about Wells Fargo’s concentration," Miller, a former bank examiner for the Federal Reserve Bank of Philadelphia, told Bloomberg News in a story published Thursday.

Miller couldn't be reached. A Wells Fargo spokesman would say only: "We always work closely with our regulators."

Spokesmen for the U.S. Office of the Comptroller of the Currency, which regulates national banks, didn’t immediately respond to request for comment. A Federal Reserve spokeswoman declined to comment.