JP Morgan Chase Executives Panic As Mortgage Originations Continue to Free Fall
JPMorgan Chase leaders continue to panic as mortgage originations continue their free fall.
It’s not pretty for JPMorgan Chase as mortgage originations continue to free fall. This is after the bank laid off hundreds of mortgage employees.
Chase reported double digit declines in originations and margins compressions with revenues in a free-fall.
The bank says its due to higher mortgage rates and the Federal Reserve tightening monetary policy.
The Jamie Dimon-helmed bank has also been conservative in its servicing portfolio to prepare for impending recession.
JPMorgan Chase reported its origination volume totaled $21.9 billion from April to June. This is a decline of 11% compared to the prior quarter.
However, originations decreased 45% in comparison with the second quarter of 2021.
The bank also experienced a larger decline in the retail channel. Retail originations hit $11 billion in the second quarter of 2022. This down 27% quarter-over-quarter and 52% year-over-year. The retail channel went from 61% of the total origination in Q1 2022 to 50% in Q2 2022.
The bank’s correspondent channel saw origination volume reached $10.9 billion. This is a decrease of 36% year-over-year. However, it is an increase of 14% when compared to the previous quarter.
JPMorgan’s home lending net revenue reached $1 billion in the second quarter. This is down from $1.3 billion in the same quarter in 2021 and $1.2 billion in the previous quarter of 2022.
The bank’s servicing rights also slightly increased to $7.4 billion in the second quarter of 2022. This is also up from $7.2 billion in the previous quarter. In addition, it is also an increase from the same period in 2021 of $4.5 billion.