JPMorgan walks back some mortgage constraints

Bank’s consumer lending chief says decision inspired by rising housing prices

National /
Nov.November 11, 2020 10:35 AM
 JPMorgan’s Marianne Lake (Getty, iStock)

JPMorgan’s Marianne Lake (Getty, iStock)

The head of JPMorgan’s consumer lending arm says the bank is relaxing its mortgage criteria as housing prices surge across the country.

Marianne Lake made the comments at a virtual investor conference this week, Bloomberg reported. In the mortgage space, she said the bank had “walked back some of our constraints” as home prices rise throughout the country.

“We have loosened some of our criteria there,” she added. It is unclear what elements of the criteria, exactly, have been altered.

The housing market has been boosted by low interest rates and a strengthening economy, with ownership rates up four percent from last year, Lake said.

That percentage was slightly higher among people aged between 35 and 44, many of whom are opting to leave cities and buy properties in areas with more space.

“Just to put that in context, in terms of the purchase market, that would be similar in size to the housing boom back in 2005 and 2006,” Lake said.

“There’s no question that the last decade has been a quite challenging decade for home lending for the industry, and we were not an exception,” she added. “A lot of that is in the rear-view mirror. I feel like we’re more on the offensive than the defensive.”

JPMorgan’s revenue in the third quarter from its home-lending business was up 17 percent from last year, reaching $1.71 billion. [Bloomberg] — Sylvia Varnham O’Regan


Related Articles

arrow_forward_ios
Former J. Crew CEO Mickey Drexler and 760 N Walnut Ave, Ketchum (Getty; Realtor)

Former J. Crew CEO Mickey Drexler sells Idaho estate

Former J. Crew CEO Mickey Drexler sells Idaho estate
Singapore (iStock)

Singapore luxury market rebounds despite fewer foreign buyers

Singapore luxury market rebounds despite fewer foreign buyers
The total supply of single-family homes declined 40 percent to 3.3 months in October (iStock)

Single-family home sales dip in October, but up 41% from last year

Single-family home sales dip in October, but up 41% from last year
(iStock)

Mortgage requests surge ahead of Thanksgiving

Mortgage requests surge ahead of Thanksgiving
Vanke US managing director Kai-yan Lee, RFR’s Aby Rosen and 100 East 53rd Street (Photos via Foster + Partners and Getty)

Vanke seeks to remove RFR from Midtown condo project

Vanke seeks to remove RFR from Midtown condo project
Hippo founders Assaf Wand and Eyal Navon (LinkedIn)

Home insurance startup Hippo raises $350M

Home insurance startup Hippo raises $350M
Prices increased 6.6 percent year-over-year in September (iStock)

US home prices surged 6.6% in September

US home prices surged 6.6% in September
From left: Edison Properties CEO Robert Selsam, Ironstate Development's Michael Barry, Stellar Management founder Larry Gluck (LinkedIn; Gluck Family Foundation)

These developers could benefit the most from Soho’s rezoning

These developers could benefit the most from Soho’s rezoning
arrow_forward_ios

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

Loading...