JPMorgan is latest bank to shrink its mortgage division with 400 layoffs

The cuts were announced amid slowing home sales and rising interest rates

National /
Oct.October 05, 2018 02:30 PM

JP Morgan Chase CEO James Dimon (Credit: iStock, Getty Images)

One of the largest mortgage lenders in the country is laying off about 400 of its consumer mortgage banking employees as home sales slow and interest rates continue to rise.

JPMorgan Chase is cutting employees in Jacksonville, Florida; along with Phoenix; and Cleveland and Columbus, Ohio, according to the Wall Street Journal. In August, Wells Fargo said it was laying off 650 mortgage employees.

Parts of the mortgage banking industry have slowed down, attributed to a combination of factors, including rising home prices, a lack of homes on the market, and fewer mortgage delinquencies.

Those delinquencies fell 22 percent year over year for JPMorgan’s customers in August.

And as some major banks pull back on mortgage lending, nonbank lenders — which are less regulated — are becoming more popular, accounting for nearly half of all mortgages in the U.S. in 2016. [WSJ] — Katherine Kallergis


Related Articles

arrow_forward_ios
From left: Jim Cohen, Nancy Corey, Nathan Zeder, Alicia Cervera Lamadrid, Phil Gutman and Mike Pappas (iStock)

South Florida’s pandemic-fueled residential market poised for bull run in 2021

South Florida’s pandemic-fueled residential market poised for bull run in 2021
Kathleen DuRoss Ford and 300 North Lake Way (Getty, Google Maps)

Kate Ford’s Palm Beach estate sells for $55M

Kate Ford’s Palm Beach estate sells for $55M
Oprah Winfrey and (inset) Lawrence Stroll over the unit (Getty)

You get a condo! Billionaire Lawrence Stroll sells Oprah’s former Fisher Island penthouse

You get a condo! Billionaire Lawrence Stroll sells Oprah’s former Fisher Island penthouse
Photo courtesy of David Iglesias

Boca Beach House condo project scores $43M construction loan

Boca Beach House condo project scores $43M construction loan
Nick Rojo and Jeff Burns (Affiliated, iStock)

Affiliated Development launches $125M workforce housing fund

Affiliated Development launches $125M workforce housing fund
Tom Cabrerizo and 6790-6880 Southwest 80th Street (Google Maps)

Developers score $15M construction loan for Miami townhouse development

Developers score $15M construction loan for Miami townhouse development
Triton Center (iStock)

Questions surround $50M in EB-5 investments tied to former INS building: lawsuit

Questions surround $50M in EB-5 investments tied to former INS building: lawsuit
Michael S. Liebowitz and Russell Galbut (Linkedin)

Russell Galbut and partner launch blank check company, plan to raise $100M

Russell Galbut and partner launch blank check company, plan to raise $100M
arrow_forward_ios

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

Loading...