To expand lending portfolios, JP Morgan Chase made the decision to pick up a loan portfolio from Citi. The deal is worth about $ 3.5 billion, and is a part of the $ 8 billion in troubled loans Citi has been selling to others. These loans were for multi-family and apartment buildings meaning JP Morgan Chase essentially has a guaranteed loans coming in.
Citi wants to sell its faxless 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 able to receive most of this although other companies willing to get in have bought $ 19 billion worth of loans and securities. .
JP Morgan Chase got some credit loans
3,800 multi-family dwelling home loans were a part of the portfolio bought from Citi for JP Morgan Chase. With this purchase and others, JP Morgan Chase has become the third-largest mortgage lender behind Fannie Mae and Freddie Mac. Multi-family loans were already at $ 300 million “in the pipeline” before this deal went through for JP Morgan Chase.
Higher mortgage lending
The mortgage loan market has been slow although now applications are coming in a bit faster. . The number of individuals who need a loan but are not applying for one, though, also seems to be increasing. Though legislators are putting pressure on banks to increase their lending, banks are fighting back. The argument is that banks are doing every little thing they can to offer loans to “credit-worthy” applicants. ”Credit worthy” people are hard to discover now and days with everything going on in the economy. The majority 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.
