Chase: Two-Thirds of WaMu Mortgages Impaired
More interesting tidbits from Chase’s investor day.
Chase said two-thirds of the $173.5 billion in mortgages picked up via its acquisition of Washington Mutual assets were deemed “impaired,” per the Seattle Times.
That’s $116.7 billion in bad loans, though Chase said it has already written down their value to $88.8 billion.
A hefty 82 percent of the pay option arms are considered impaired, Read more
Chase Banking Chief Says Loan Mod Re-Default Rate Not So Bad
JP Morgan Chase’s retail banking chief Charles Scharf told shareholders the delinquency rate on modified mortgages isn’t as bad as what’s been tossed around lately.
During the company’s investor day in New York, he said loan modifications can be successful “if done properly,” meaning if important things like income are actually verified the second time around.
He noted that a loan modification Read more
Chase to Modify Investor-Owned Loans
Chase today expanded its loan modification program to include another $1.1 trillion in investor-owned mortgages it services.
The company said it believes it can legally modify such loans, even those held in securitizations, based on its review of investor agreements and its experience with investors and trustees to date.
In other words, it’s become so bad that investors are willing to try anything to Read more
Chase Wholesale Lending Shut Down
Chase reportedly shuttered its flagging wholesale home loan division today, according to the Mortgage Lender Implode-o-Meter.
It is believed that 190 Account Executives were still employed in the lending unit nationwide, though it’s unclear how many will be affected by today’s news.
Chase is expected to hang on to its correspondent lending business, though it plans to shed about 25 percent of staff, Read more