As predicted:
1. CEO states at Leaders Club "The future of mtg lending is retail".
2. Wholesale Home EQ and Sub Prime shut down.
3. Wholesale Prime lets go of 100+ employees in ops last week. The begining of The End.
4. Dimon suggested that losses in JP Morgan’s prime mortgage book could triple in the foreseeable future as the credit mess moves out of subprime and into Alt-A and jumbo loans. "Prime looks terrible, there is nothing else we can say".
TIC TOC, TIC TOC. I cant wait to say I TOLD YOU SO to (you know who you are.) Flame on.
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Last edited by JDIMON on Thu Jul 17, 2008 9:48 pm; edited 1 time in total
"Prime looks terrible, there is nothing else we can say".
When the top guy makes that statement, that says an alot.
I think there were many fake prime borrowers. The fake ones include those that had a very light depth of credit, this was their 1st mortgage, they kept doing cash out refi's to keep them from becoming subprime borrowers.
With the massive appreciation in the bubble states, it was almost impossible for prime borrowers to lose their prime status. Now that the house ATM is closed, let's see what happens to those "prime" borrowers.
Couple things, did he sight the problem because of a complete lack of secondary market to sell even the good loans? Their guidelines have been super tight for some time now, can't imagine those loans are a problem, but they can't sell the jumbos anywhere.
Now the old stuff in the portfolio, especially 100% SIVA Helocs will cause a problem, yet not blowing up Wells.... yet
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factchecker Cherry Bomb
Joined: 09 Jan 2008
Posts: 121
Location: California
[quote="JDIMON"]As predicted:
1. CEO states at Leaders Club "The future of mtg lending is retail".
2. Wholesale Home EQ and Sub Prime shut down.
3. Wholesale Prime lets go of 100+ employees in ops last week. The begining of The End.
4. Dimon suggested that losses in JP Morgan’s prime mortgage book could triple in the foreseeable future as the credit mess moves out of subprime and into Alt-A and jumbo loans. "Prime looks terrible, there is nothing else we can say".
TIC TOC, TIC TOC. I cant wait to say I TOLD YOU SO to (you know who you are.) Flame on. :twisted:[/quote]
Maybe you should cherry pick a few more tidbits out of the "whole speech"
Despite headwinds in mortgage credit quality, the company’s mortgage banking operations turned in a solid second quarter. Mortgage loan originations were $56.1 billion, up 27 percent from the prior year and 19 percent from the prior quarter; total third-party mortgage loans serviced were $659.1 billion, an increase of $86.7 billion, or 15 percent.
Shares in JP Morgan were at $40.58, up nearly 13 percent, when this story was published
As predicted:
1. CEO states at Leaders Club "The future of mtg lending is retail".
2. Wholesale Home EQ and Sub Prime shut down.
3. Wholesale Prime lets go of 100+ employees in ops last week. The begining of The End.
4. Dimon suggested that losses in JP Morgan’s prime mortgage book could triple in the foreseeable future as the credit mess moves out of subprime and into Alt-A and jumbo loans. "Prime looks terrible, there is nothing else we can say".
TIC TOC, TIC TOC. I cant wait to say I TOLD YOU SO to (you know who you are.) Flame on.
Maybe you should cherry pick a few more tidbits out of the "whole speech"
Despite headwinds in mortgage credit quality, the company’s mortgage banking operations turned in a solid second quarter. Mortgage loan originations were $56.1 billion, up 27 percent from the prior year and 19 percent from the prior quarter; total third-party mortgage loans serviced were $659.1 billion, an increase of $86.7 billion, or 15 percent.
Shares in JP Morgan were at $40.58, up nearly 13 percent, when this story was published
Who cares what kind of production they are doing now. The deed has already been done. They are sitting on $95B of helocs, 10% of which are already underwater. They estimate that the % could be 20% in the future. If they are saying 20%, you can bet it will be more than 20% when it is all said and done. 20% is $19B. 30% is $28.5B.
They also say that they have no idea how those loans underwater will perform.
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