JP Morgan CHASE exits the wholesale business

I cannot STAND gloom & doom, however, we just were notified by JP Morgan Chase, that they are exiting the Wholesale business, and all loans have to be closed up by March 16th.

They will no longer be accepting locks and/or new registrations after January 16th.

This does NOT affect their USDA Rural Housing Division.

Our Account Executive just stated they are not going to be working brokers, or with anyone from a Correspondent position, unless it is a bank, or credit union.

In the end, this hurts competition, as well as the customer! Their reason for this can be found on their webpage, but basically they are stating that their broker created business is not performing as well as their retail branch developed business. I dont understand HOW that can be, seeing as how we as brokers, bankers..etc...get a list of stipulations put forth by the funder. (in this case Chase). We meet the items required to close on that list, and then close the loan. If the loan is not performing, they only have themselves to blame, as the conditions they continually put on a loan, include additional items to what FANNIE MAE and Freddie Mac consider not necessary! For example, I have been asked in my automated approval for only 1 paycheck stub, but get a requirement from the underwriter for 2. This also goes for bank statements, as well as w2's as well!

Anyway, I though everyone should know! This will create opportunity for Countrywide, Wells Fargo, and others to capture the #1 wholesale lenders piece of the pie!

I am sure there is MUCH more to this story that what we will find to be on the news, or be told through any media channels! Again, blame will be shifted to the wrong people or entity!

Darin

One SOurce Mortgage, LLC

Wisconsin