JPMorgan chases plan to sell home loans directly to clients
Bank switches focus from fewer hefty mortgages back to smaller mass-market lending in bid to be competitive
New York — After having to stomach $31bn worth of bitter mortgage settlements with government agencies a few years ago, JPMorgan Chase swore off a huge swath of the home loan market. Gone were borrowers with anything much less than pristine credit ratings. The cost of managing delinquent accounts and the threat of legal penalties were written off as not worth the risk. Better instead to focus on wealthier customers who wanted jumbo-sized loans that were beyond the reach of government housing finance agencies. But there was a problem: Chase was leaving behind many of its mass-market customers who were going to competitors for conventional and government-guaranteed loans. Now, the bank’s management team, led by CE Jamie Dimon, is working fiercely to change course — hoping to not only bring back customers, but influence what could be a reshaping of US mortgage finance policy for the first time in a generation. Chase plans to launch advertising featuring Drew and Jonathan Scott, stars o...
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