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 CHASE PRIME WHOLESALE A GONER? View next topic
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JDIMON
Cherry Bomb


Joined: 15 Mar 2008
Posts: 179

CHASE PRIME WHOLESALE A GONER?
PostPosted: Thu Jul 17, 2008 9:32 pm Reply with quoteBack to top

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 Evil or Snarky

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Last edited by JDIMON on Thu Jul 17, 2008 9:48 pm; edited 1 time in total
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mortgage3
Flash in the pan


Joined: 29 Jun 2008
Posts: 36

Re: CHASE PRIME WHOLESALE A GONER?
PostPosted: Thu Jul 17, 2008 10:17 pm Reply with quoteBack to top

"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.
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angryvoodoo
Demolition Man


Joined: 20 Nov 2007
Posts: 2110
Location: ny

Re: CHASE PRIME WHOLESALE A GONER?
PostPosted: Thu Jul 17, 2008 10:22 pm Reply with quoteBack to top

see where all those fake down payments got them

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mortgage3
Flash in the pan


Joined: 29 Jun 2008
Posts: 36

Re: CHASE PRIME WHOLESALE A GONER?
PostPosted: Thu Jul 17, 2008 11:00 pm Reply with quoteBack to top

2 "fake"(meaning borrower didn't save their own money) down payments:

1. money from parents/grandparents
2. Buy early in the bubble with 100% financing. Sell. Use appreciation equity for down payment(5%) on new house.

There are a fair share of borrowers that used one of these 2 methods.
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JDIMON
Cherry Bomb


Joined: 15 Mar 2008
Posts: 179

Re: CHASE PRIME WHOLESALE A GONER?
PostPosted: Thu Jul 17, 2008 11:06 pm Reply with quoteBack to top

mortgage3 wrote:
2 "fake"(meaning borrower didn't save their own money) down payments:

1. money from parents/grandparents
2. Buy early in the bubble with 100% financing. Sell. Use appreciation equity for down payment(5%) on new house.

There are a fair share of borrowers that used one of these 2 methods.


Dont forget bogus Atty escrow letters on purchases.

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MTG. CHICK: "JDIMON...YOU ARE THE WINNER. LET US ALL WORSHIP THE GROUND YOU WALK ON. "
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mustbecrazy
Cherry Bomb


Joined: 31 Jan 2008
Posts: 197
Location: Northern California

Re: CHASE PRIME WHOLESALE A GONER?
PostPosted: Thu Jul 17, 2008 11:13 pm Reply with quoteBack to top

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

Re: CHASE PRIME WHOLESALE A GONER?
PostPosted: Thu Jul 17, 2008 11:58 pm Reply with quoteBack to top

[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

None of it ALT A, no subprime, no 2nds, virtually no true jumbo, agency jumbo is saleable.
http://www.housingwire.com/200.....-terrible/

Without question the 2 strongest banks with a mtg business are Wells and Chase.
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JDIMON
Cherry Bomb


Joined: 15 Mar 2008
Posts: 179

Re: CHASE PRIME WHOLESALE A GONER?
PostPosted: Fri Jul 18, 2008 12:13 am Reply with quoteBack to top

factchecker wrote:
JDIMON wrote:
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 Evil or Snarky


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

None of it ALT A, no subprime, no 2nds, virtually no true jumbo, agency jumbo is saleable.
http://www.housingwire.com/200.....-terrible/

Without question the 2 strongest banks with a mtg business are Wells and Chase.


My cherry + facts 1,2 and 3 negate any chance of that glass looking half full, try as you may.

_________________
All comments, although opinion, should be considered fact, because I suck less than you.

MTG. CHICK: "JDIMON...YOU ARE THE WINNER. LET US ALL WORSHIP THE GROUND YOU WALK ON. "
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AYFKM?
Dud?


Joined: 16 Jul 2008
Posts: 4

Re: CHASE PRIME WHOLESALE A GONER?
PostPosted: Fri Jul 18, 2008 12:20 am Reply with quoteBack to top

What's that in your back yard???

An Ark.

What's it for?

How long can you tread water???
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mortgage3
Flash in the pan


Joined: 29 Jun 2008
Posts: 36

Re: CHASE PRIME WHOLESALE A GONER?
PostPosted: Fri Jul 18, 2008 12:41 am Reply with quoteBack to top

factchecker,

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.

What are their profits like on the agency loans?
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