Powered by MOMENTUM MEDIA
subscribe to our newsletter

JP Morgan Chase mortgages down 66 per cent

America’s largest bank saw its earnings drop by half a billion dollars over the past year after mortgage originations fell sharply.

On Tuesday JP Morgan Chase reported net income for the second quarter of $6 billion, down from $6.5 billion in the second quarter of 2013.

The US lender wrote $16.8 billion in mortgages during the June quarter, down 66 per cent from the previous year and 1 per cent from the previous quarter.

The group’s mortgage banking net income was $709 million, a decrease of $433 million from the previous year, driven by lower net revenue and a lower benefit from the provision for credit losses, partially offset by lower non-interest expense, according to a company statement.

“Despite continued industry-wide headwinds in Markets and Mortgage, the firm has continued to deliver strong underlying performance,” JP Morgan Chase chairman and chief executive James Dimon said.

Advertisement
Advertisement

PROMOTED CONTENT


“Consumer & Community Banking deposit growth and card sales volume both outpaced the industry, and we had record loan originations in Business Banking,” Mr Dimon said.

US applications for owner-occupied mortgages are roughly 15 per cent below last year’s pace, while refinance applications are almost 60 per cent slower than a year ago, according to The Mortgage Bankers Association of America.

JP Morgan Chase mortgages down 66 per cent
mortgagebusiness

Latest News

The government has been told to develop a complaints process for businesses that have been dumped by their banks, following accusations of a...

An Australian fintech has introduced a new self-service VOI product for the mortgages market. ...

With low interest rates and income support expected to soon disappear, the major bank has released a revised dwelling figure. ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

Do you think APRA's bank buffer changes will see more borrowers use non-banks?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.