As part of an across-the-board boost to its mortgage business, Chase will soon expand its correspondent operations by adding a subprime flow process. The move comes as other subprime correspondent players have jumped ship.
The new process will expand the division's bulk subprime program, according to a Chase announcement.
The addition will happen later this year and is part of a "plan to expand our mortgage businesses across the board," spokesman Tom Kelly said in an e-mail statement.
Rick Boyd is the subprime flow manager and will be responsible for all program coordination, including risk and capital markets, operations, sales and marketing, according to the announcement.
The correspondent division reportedly accounted for about 28 percent of JPMorgan Chase & Co.'s first quarter mortgage originations of $46.8 billion.
Chase's decision to expand on correspondent business comes as others have exited this sector of the mortgage market.
Wachovia announced its exit from the correspondent business in March. April held Opteum Financial Services LLC's halt to applications from correspondent and wholesale origination channels and HSBC Mortgage Services' decision to close its correspondent acquisition channel.
Last month alone, hundreds of layoffs were announced after NetBank's stopped taking applications from correspondent and broker partners and Option One Mortgage Corp. exited the bulk acquisition and flow correspondent business.
Amongst those exiting the correspondent market last year were Washington Mutual and Aegis Mortgage Corp.