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JPMorgan CEO: Nonbank lending poses a danger

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Mortgage Professional America | 13 Oct 2014, 12:03 PM Agree 1
The head of the largest U.S. bank said the nonbank financial system could derail the recovery.
  • mouth | | 13 Oct 2014, 12:35 PM Agree 3
    really?? No one is watching it? CFPB, NMLS, State DFI departments, Hud audits, etc etc, is he smoking something???? The government monitors every single mortgage that closes now.
  • Lender Bill | | 13 Oct 2014, 12:44 PM Agree 2
    Unreal!!!! The $8B loss from one of his traders doesn't keep him up at night. What a dope!!!!!
  • concernedlender | | 13 Oct 2014, 12:46 PM Agree 1
    Translation: Our most important task is to raise the revenue at big banks from lending. We think the best way to do it is to make and lobby for rules that force all lenders to be employed by big mega banks like us. Once we get this legislated we can reduce competition, lower wages and up fees and rates to the consumer as much as we want and become even more profitable... Profit profit profit is all that matters to us.
  • Disillusioned | | 13 Oct 2014, 12:49 PM Agree 2
    Amen! He must be smoking something or he has his head up his --- I know that banks feel like they are heavily monitored but so is the non bank lender....if anything, we are MORE heavily monitored by not just those entities mentioned in the other post but also by the lenders who handle the correspondent/wholesale business! Guess the big banks want to drive the last bit of competition out of business so that the US has even more unemployment and no competition for the banks, their higher rates and their low pay! Man! Between the big banks and big government, the little guy is being squeezed out so I don't want to hear any crap from our government that they are pro small business because they aren't!!!!
  • Laleh | | 13 Oct 2014, 01:03 PM Agree 2
    All that keeps him up at night is his own goal to monopolize the mortgage finance industry. There are just the same scrutiny and guidelines for smaller platform mortgage finance business. I will give him credit for coming up with this speech and more so getting it published in this manner. Many people are to busy or don't take the time to understand the facts and believe what they hear, see or read. Let's think about how this one comment and article helps his business. I have names I will refrain from calling him. Piece of work, just doesn't quite fit.
  • Charles Stidham | | 13 Oct 2014, 01:21 PM Agree 1
    What a joke. I would have loved to of been a fly on the wall when Dimon and the power brokers were sitting around a table deciding to let Lehman Brothers and Bear Stearns go down in flames when Chase and Goldman Sachs were pontificating how they could stay on top of everything. The appropriate word is PUTZ.

    Go into any Chase Bank branch in Texas and it looks like a training session for Walmart. 92% of branch managers don't have college degrees and the only requirement to become a teller at Chase is to pass a drug test. They literally don't ask to see a copy of a high school diploma when applying for a teller job: the job that is the face for the bank.

    Then when someone asks about a mortgage mortgage the same person that sells checking accounts acts like they are mortgage officers? Really? It's a sham. Thank God banks are so stupid at the ground level because I close at least 5 additional mortgages per month for customers calling me because "Chase, Bank of America, Wells........ all of them" have screwed up their mortgage and it took 6 weeks to let them know that it won't be closing.

    I have a master's degree in Finance/Public Policy with 20 years originating experience. We are audited regularly by the state agency and train every year per NMLS and CFPB guidelines. Your bank and their mortgage department couldn't carry my briefcase.

    Thanks Jamie, keep up the great work.
  • Concerned | | 13 Oct 2014, 01:23 PM Agree 1
    His comments are obviously self-serving.
  • Marc Savitt | | 13 Oct 2014, 01:29 PM Agree 2
    Déjà Vu All Over Again!

    Jamie is always crying about something.

    Jamie Dimon blamed mortgage brokers for creating the housing crisis, but wasn’t it his bank that developed the mortgage programs AND made all the mortgage decisions?

    The non-banks are required to have licensed originators, while Jamie’s gang is only registered. His bank received millions in TARP funds, while non-banks had to survive on their own.

    Make no mistake about it, Dimon’s comments are directly related to his inability to compete against non-banks.

  • Chris Viviano | | 13 Oct 2014, 01:34 PM Agree 1
    Very interesting. I guess big Jamie hasn't fully enlighten the regulators that Chase's No Documentation mortgage product was one of the most egregious mortgages out there. In the height of the sub-prime crisis, Chase's NINA program required NOTHING but an appraisal and very limited Loan Application data. Chase wouldn't even purchase the mortgage if anything was completed in the employment or asset portions of the Uniform Residential Loan Application. Their underwriting solely relied on ONLY the appraisal and credit score.

    Now that was some real prudent underwriting. Can't imagine why the foreclosures started mounting, Mr. Dimon!
  • LICENSED & TESTED LO | | 13 Oct 2014, 01:41 PM Agree 1
    Gee, so his UNLICENSED mortgage originators (NMLS registered originators) are better equipped than those of us fully licensed originators? Jamie's originators that did NOT pass the tests?
  • David Abrahamson | | 13 Oct 2014, 02:25 PM Agree 1
    Just fear guys. He knows the non-banks can kick butt and Chase is too big too make it in an aggressive agency centric world
  • Wm Matz | | 13 Oct 2014, 03:57 PM Agree 1

    I raised those same points [and others] in my October 2010 feature article in The Niche Report, responding to Dimon's comments to the US Chamber of Commerce. Having killed off most of the competition, the Big Banks can use uneducated and unlicensed "mortgage officers" to do, e.g., VA mortgages at 1/2 to 1% over broker pricing. That yields mortgages that sell for 108% to 110% of face. Like Brer Rabbit, thee Big Banks moan about reform, but secretly support it, because most does not apply to them. Shameful!
  • Dpinh | | 13 Oct 2014, 04:42 PM Agree 1
    I work for a correspondent lender and I have to be licensed by NMLS. JP Morgan L/O's are not licensed. This guy is a moron. I recently read that Chase is getting out of FHA lending completely. Without FHA in my area there would be no mortgages.
  • | | 13 Oct 2014, 05:43 PM Agree 1
    Yea what a crock of boloney. Non bank lendera have at least three layers of underwriting to respond to: Fannie, freddie, ginnie, lender's underwriters, investor's underwriters And overlays. Non bank mortgages are sqeeky clean. Its the Big banks LO's that are getting bad mortgages through not brokers And retal mortgage officers. Daimond is worried that he's losing market share to smaller more competitive lenders. What a piece of shiit
  • maka ala | | 13 Oct 2014, 06:40 PM Agree 1
    Trying to get rid of the competition.
  • Forest Wilson | | 13 Oct 2014, 06:57 PM Agree 1
    Elites want to rule the world...not to mention finance. See the Secret of Oz. This is more about control than non bank financial institutions. Oh, and the Federal Reserve is NEITHER!
    Former Mortgage Banker, President of 5 state operation...they are out to end your careers and control all finance.


    Good luck America, the World, and all my friends in Mortgage will need it.
  • Dominick F Sammarone | | 13 Oct 2014, 08:46 PM Agree 1
    Up all night…??? About non-Bank lenders doing mortgages…??? lol What a jerk off!
    The non-banks didn't get the world in trouble when the non-conforming mortgages were being done at high rate and low LTV's. Just like car insurance, higher risk, higher rate.

    It wasn't until the 2 big to Fail freaks with BFF'S in DC jumped in the game doing low rates/high mortgage to values screwed everything up. It cracks me up how many hypocrites have money in Chase. (I don't)

  • Chris the LO | | 13 Oct 2014, 10:27 PM Agree 1
    The guys not thinking logically. I've been in the business for 27 years seen it all. We are over regulated, over complianced and under what I would say is the logic mind- meaning nothing andi mean nothing makes any sense. If you simply review a good faith, supposedly made easier for the consumer to,understand, good luck!!!
  • Dominick F Sammarone | | 14 Oct 2014, 06:22 AM Agree 1
    "Yes, the better to eat you my dear… lol lol lol" (Little red riding hood)
  • Mad Naked | | 14 Oct 2014, 12:27 PM Agree 0
    What about the JP Morgan and other major banks "naked short selling" stocks and commodities. If anyone reads this and doesn't know what it is, it is when JP Morgan can have 100 shares of a stock and sell 800 shares of it. The stock shares flood the market and it crashes and ends up worth nothing and the 700 shares that never existed are all profit for JP Morgan and the people, retirement accounts and investors who bought those shares and paid for them end up getting nothing. I am sure he doesn't lose as much sleep over that as the people who had their retirement accounts stolen.
  • Ethical Broker for 17 years | | 14 Oct 2014, 02:58 PM Agree 1
    As a broker, we are regulated very heavily. I wish the big banks had to follow some of the rules and regulation that we are required to follow...
  • Scott Hall | | 15 Oct 2014, 11:41 AM Agree 1
    He seems a little misinformed...
  • cheryl m | | 17 Oct 2014, 10:16 AM Agree 1
    Cancer must have seeped into your spinal fluid, you clearly do not know who you are anymore. SOB, you stood in a 2008 conference for JPMC letting all of your wholesale team go, yelling from the rafters RETAIL is the wave of the future. Just pat yourself on your back and say, "I WAS WRONG," the other words I have for you can't be published. I agree with "licensed and tested." JP kept all those who could not pass their MLO Testing. Who's making who look bad now Jamie? Great Retail team you have there....keep making those "great" decisions and the spiral downward motion will continue too
  • | | 17 Oct 2014, 03:53 PM Agree 1
    Agreed on the posts about him being misinformed. Non-banks to some degree are more regulated than banks. For example, non-bank Loan Officers need to have a NMLS license, and banks dont have those requirements yet for their mortgage officers.
  • hardmoney | | 22 Oct 2014, 05:47 PM Agree 1
    In a typical political move to protect the banking industry and profits he worries about non-bank lending. It's the competition from other to erode profits for the dirty to to big to fail 9 banks that control 73% of all transactions.
  • Angelo B. | | 23 Oct 2014, 05:53 AM Agree 1
    He is full of it. Chase Correspondent is now actively looking for small to mid sized NON BANK lenders to buy mortgages from. Please.
  • Jeff | | 24 Oct 2014, 09:43 AM Agree 1
    I think he wanted to get outfront on the Ocwen announcement to shed light that the big banks are not the only ones that screw things up.
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