As a part of its goal of expanding its lending portfolio, JP Morgan Chase has purchased a loan portfolio from Citi. $ 3.5 billion was the cost of this deal although Citi has been working hard at selling $ 8 billion in troubled loans. These loans are almost guaranteed payroll loans for JP Morgan Chase since they were for multi-family and apartment buildings.
Citi wants to sell its faxless loan portfolio
Citi is trying to sell a ton of its loans and securities as part of a rebuilding strategy. Citi Holdings group has been the recipient of some of these loans, while about $ 19 billion worth of products have been sold to other companies. Citi is selling securities at their value when trying to also slow business down.
Credit loans are what JP Morgan Chase purchased
3,800 multi-family dwelling home loans were a part of the portfolio bought from Citi for JP Morgan Chase. Behind Fannie and Freddie is JP Morgan Chase in 3rd place as a large mortgage lender. JP Morgan Chase already had “in the pipeline” $ 300 million in multi-family loans.
Mortgage lending increasing
Mortgage applications are going up although it has been very slow. Applications for new home loans increased by about .6 percent last week. You will find also more people not applying for loans although they may need them. Banks do not want to lend although legislators are pressuring them into it. The argument is that banks are doing everything they can to offer loans to “credit-worthy” applicants. ”Credit worthy” people are hard to find now and days with everything going on within the economy. Many are concerned there won’t be any change in lending although this purchase that JP Morgan Chase has been making on multi-family home loans has shifted things around in larger banks.
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