To expand lending portfolios, JP Morgan Chase made the decision to pick up a loan portfolio from Citi. Citi has been selling $ 8 billion in troubled loans when this specific deal was worth $ 3.5 billion. These loans were for multi-family and apartment buildings meaning JP Morgan Chase basically has a guaranteed loans coming in.
Citi tries selling no fax loan portfolio
As a part of its rebuilding strategy, Citi has been selling off a wide range of loans and securities. Citi Holdings group has been the recipient of some of these loans, when about $ 19 billion worth of products have been sold to other companies. Citi is selling securities at their value when trying to also slow business down.
JP Morgan Chase made certain to get the credit loans
3,800 multi-family dwelling home loans were a part of the portfolio bought from Citi for JP Morgan Chase. Out of all mortgage lenders, JP Morgan Chase comes in third behind Fannie and Freddie. Multi-family loans were already at $ 300 million “in the pipeline” before this deal went through for JP Morgan Chase.
Higher mortgage lending
Mortgage applications are going up although it has been very slow. New home loan applications in just the last week increased .6 percent. The number of individuals who need a loan but are not applying for one, though, also seems to be increasing. Banks don’t want to lend although legislators are pressuring them into it. Banks really only want to give loans to applicants who are “credit worthy”. After years of economic downturn and job losses, you will find fewer “credit-worthy” individuals than ever. Most are concerned there won’t be any change in lending although this purchase that JP Morgan Chase has been making on multi-family home loans has shifted things around in larger banks.
