Industry News

Chase gains market share on jumbo loans

Q3 loan originations up 35% to $39.2 billion

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JP Morgan Chase & Co. said the ability to fund jumbo loans helped its consumer banking division originate $39.2 billion in mortgages during the third quarter, a 35 percent increase from a year ago. Many lenders who originate loans for sale in the secondary market have had to scale back production of jumbo loans, which exceed the $417,000 conforming loan limit. Many secondary market investors are staying away from loans not eligible for repurchase or guarantee by Fannie Mae and Freddie Mac, or demanding higher returns. In a press release, Chase said it's been able to continue funding jumbo loans because it can tap into JP Morgan Chase's $1.5 trillion in assets and $120 billion in stockholder equity. The company said it has increased its mortgage sales force to more than 5,000 workers, boosting its market share of mortgages and home equity loans to 9 percent during the third quarter, compared with 5.7 percent a year ago, citing figures from Inside Mortgage Finance. Chase said it bo...