Jamie Dimon urges overhaul of mortgage rules

JPMorgan Chase CEO criticizes False Claims Act, calls for new servicing standards

New York /
Apr.April 06, 2017 09:15 AM

JPMorgan Chase CEO Jamie Dimon called for an overhaul of federal mortgage regulations, arguing that “no rational person could think that everything that was done was good, fair, sensible and effective, or coherent and consistent in creating a safer and stronger system.”

In a letter to shareholders, Dimon argued that the post-crisis financial regulatory framework contains “poorly conceived and uncoordinated regulations” that have prevented banks from lending and hurt ordinary Americans. But he said the Dodd-Frank Act and related laws should be reformed, not abandoned.

For example, Dimon criticized that the False Claims Act makes it hard for banks to issue mortgages backed by the Federal Housing Administration because of the elevated risk of lawsuits. The law “has led us to scale back our participation in the FHA lending program in favor of less burdensome lending programs that serve the same consumer base – and we are not alone,” he wrote.

Dimon also urged the Department of Treasury to simplify mortgage servicing rules. “New mortgage rules and regulations total more than 14,000 pages and stand about six feet tall,” he wrote. “In servicing alone, there are thousands of pages of federal and state servicing rules now – clearly driving up complexity and cost.”

Uniform national servicing standards could increase mortgage lending by $300 billion, he claimed. [HousingWire]Konrad Putzier


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)
Real estate stocks push up this week as U.S.-China trade tensions ease
Real estate stocks push up this week as U.S.-China trade tensions ease
416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Carlyle's David Rubenstein (Carlyle)
Real estate venture backed by Carlyle’s David Rubenstein raises $240M
Real estate venture backed by Carlyle’s David Rubenstein raises $240M
Stephen Ross and 50 Hudson Yards (Getty Images, Hudson Yards New York)
Related lands $349M for 50 Hudson Yards
Related lands $349M for 50 Hudson Yards
From left: Assemblyperson Inez Dickens and Councilperson Kristin Richardson Jordan
Pol who killed Harlem project could face primary challenge
Pol who killed Harlem project could face primary challenge
U.S. Treasury Secretary Janet Yellen
NY gets more federal rent aid — but only 6% of need
NY gets more federal rent aid — but only 6% of need
Commissioner of the Division of Housing and Community Renewal's RuthAnne Visnauskas (Getty, NY Gov)
Rent stabilization complaints piling up at agency
Rent stabilization complaints piling up at agency
Suburbanites with pitchforks as two hands ripping building plans
Suburban Nimbys oppose more housing. Do they have a point?
Suburban Nimbys oppose more housing. Do they have a point?
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...