To expand lending portfolios, JP Morgan Chase made the decision to pick up a loan portfolio from Citi. Citi has been selling $ 8 billion in troubled loans while this specific deal was worth $ 3.5 billion. These loans are almost guaranteed payday loans for JP Morgan Chase since they were for multi-family and apartment buildings.
Citi tries selling faxless loan portfolio
As a part of its rebuilding strategy, Citi has been selling off a wide range of loans and securities. $ 19 billion of these are sold to other companies willing to buy when Citi Holdings group has received the majority. In short, Citi is trying to shrink its business, when selling securities at close-to-value prices.
Credit loans bought by JP Morgan Chase
JP Morgan Chase purchased a portfolio including 3,800 multi-family home loans from Citi. Out of all mortgage lenders, JP Morgan Chase comes in third behind Fannie and Freddie. JP Morgan Chase already had “in the pipeline” $ 300 million in multi-family loans.
Higher mortgage lending
Applications for new mortgages are slowly but surely ticking up. New home loan applications in just the last week increased .6 percent. You will find also more people not applying for loans although they may need them. Banks don’t want to lend although legislators are pressuring them into it. Banks really only want to give loans to applicants who are “credit worthy”. After years of economic downturn and job losses, there are fewer “credit-worthy” people than ever. 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.