JPMorgan takes another step back from mortgage lending to focus on refis

Bank is hitting “pause” on home equity line of credit offerings after tightening home-lending standards

National /
Apr.April 16, 2020 07:12 PM
Amy Bonitatibus, Chief Marketing Officer for Chase home lending (Credit: JPMorgan Chase and iStock)

Amy Bonitatibus, Chief Marketing Officer for Chase home lending (Credit: JPMorgan Chase and iStock)

JPMorgan Chase is stepping further away from mortgage lending as it focuses on the wave of refinancings.

In its second major move this week, the bank announced Thursday it will no longer accept home equity line of credit applications due to the uncertainty in the economy brought on by the coronavirus, according to Housing Wire.

JPMorgan is the fourth largest mortgage lender in the country.

A spokesperson for Chase Home Lending did not say how long the “temporary pause” would last. Anyone already with a Chase home equity line of credit can continue to draw money against their homes.

Earlier this week, the bank tightened its home lending standards, requiring all mortgage borrowers to have a credit score of at least 700 and a 20 percent down payment.

Thursday’s move will free up employees to focus on the wave of refinancing applications the bank has received since mortgage rates dropped to near record lows late last month, the bank said. JPMorgan already moved some of its HELOC staff over to handle refinancings as well.

New customers can pull equity from their properties with a cash-out refinancing, which essentially replaces a mortgage with a new one worth more than a given property. That type of financing has become increasingly popular. Last year, JPMorgan recorded twice as many cash-out refinances than it did HELOCs, according to Housing Wire. [HousingWire]Dennis Lynch


Related Articles

arrow_forward_ios
From left: Jamie Dimon, chief executive officer, JPMorgan Chase and Don Peebles, chief executive officer, The Peebles Corporation (Getty Images, KPFF Consulting Engineers/Illustration by Steven Dilakian for The Real Deal)
Peebles, El Ad land $229M refi at Tribeca Clock Tower Building
Peebles, El Ad land $229M refi at Tribeca Clock Tower Building
(iStock)
Canada’s biggest city has just 3,200 homes for sale, an all-time low
Canada’s biggest city has just 3,200 homes for sale, an all-time low
Top banks keeping NYC employees home from Wall Street amid Covid surge
Wall Street banks keeping NYC employees home as Covid surges
Wall Street banks keeping NYC employees home as Covid surges
Douglas Elliman sends NYC employees home as Omicron surges
Douglas Elliman sends NYC employees home as Omicron surges
Douglas Elliman sends NYC employees home as Omicron surges
Aloha: Buyers can’t snap up Hawaii’s luxury homes fast enough
Aloha: Buyers can’t snap up Hawaii’s luxury homes fast enough
Aloha: Buyers can’t snap up Hawaii’s luxury homes fast enough
John Paulson with Condado Vanderbilt Hotel and La Concha Renaissance San Juan Resort (Condado Vanderbilt, Marriott)
Billionaire John Paulson wants to sell two Puerto Rico hotels as market rebounds
Billionaire John Paulson wants to sell two Puerto Rico hotels as market rebounds
Dov Hertz lands $442M loan for Sunset Park warehouse project
Dov Hertz lands $442M loan for Sunset Park warehouse project
Dov Hertz lands $442M loan for Sunset Park warehouse project
New York City has largely regained residents who fled in the pandemic
New York City has largely regained residents who fled in the pandemic
New York City has largely regained residents who fled in the pandemic
arrow_forward_ios

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

Loading...