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UPDATE 1-MOVES-Wells Fargo mortgage head Michael Heid to retire
August 12, 2015 / 10:29 PM / 2 years ago

UPDATE 1-MOVES-Wells Fargo mortgage head Michael Heid to retire

(Rewrites, adds background about Heid, detail about bank’s mortgage business)

By Dan Freed

Aug 12 (Reuters) - Wells Fargo & Co, the largest U.S. mortgage lender, on Wednesday said its home lending chief Michael Heid is retiring.

The 58-year-old will be succeeded by Franklin Codel on October 1. Codel, 50, is currently head of mortgage production.

Heid oversees one of Wells Fargo’s biggest businesses, responsible for nearly 8 percent of the bank’s 2014 revenue.

Wells Fargo’s share of the mortgage market fell to 13 percent in the first quarter from 16 percent in 2014 and 30 percent in 2012. Lenders that are not banks, like Quicken Financial Inc, have been grabbing market share.

Heid has helped lead the business for the past 11 years and was its overall chief for the past four. He reports to Avid Modjtabai, senior executive vice president and head of Wells Fargo’s Consumer Lending Group. Heid is a member of a 13-person Operating Committee at Wells Fargo, along with CEO John Stumpf, CFO John Shrewsberry, and other administrative and business unit heads.

Codel will also report to Modjtabai, but a spokeswoman said he will not replace Heid on the operating committee.

Making loans accounts for just half of mortgage banking revenues at Wells Fargo, with mortgage servicing - collecting mortgage payments and foreclosing on homes - accounting for the other half. (Reporting by Dan Freed in New York; Additional reporting by Rosmi Shaji in Bengaluru; Editing by Andrew Hay)

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