JP Morgan Chase decided to take on a loan portfolio from Citi to help with the goal of expanding lending portfolios. 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 are almost guaranteed paydayloans for JP Morgan Chase since they were for multi-family and apartment buildings.
Citi tries selling no fax loan portfolio
Citi is trying to rebuild and by doing this, have been selling loans and securities within the company. $ 19 billion of these are sold to other companies willing to buy while Citi Holdings group has received the majority. Citi is trying to make its business smaller when selling securities at as high of a price as possible.
Credit loans bought by JP Morgan Chase
The portfolio that JP Morgan Chase has purchased from Citi consists of about 3,800 multi-family dwelling loans. Out of all mortgage lenders, JP Morgan Chase comes in 3rd behind Fannie and Freddie. JP Morgan Chase already had “in the pipeline” $ 300 million in multi-family loans.
The increase in mortgage lending
The mortgage loan market has been slow although now applications are coming in a bit faster. There was a .6 percent increase in applications for new home loans last week. There are also more individuals not applying for loans although they may need them. Banks are getting a ton of pressure from legislators to lend, but banks don’t want to. Banks are trying to get “credit-worthy” applicants before making a loan. After years of economic downturn and job losses, there are fewer “credit-worthy” people than ever. Larger banks have had things shifted around with this huge multi-family loan purchase from JP Morgan Chase, and nobody knows if it will help increase lending in banks or not.
