JPMorgan Chase & Co.'s mortgage broker unit has closed the door on subprime and home-equity lending. While a number of employees are impacted by the move, the figure is well below the more than 1,300 job cuts already made in the units since October.
Tomorrow is the last day that Chase Wholesale will accept subprime or home equity loans, the company said in a bulletin to prime brokers today.
"As we continue to analyze and manage our product set, Chase has made the decision to discontinue offering our subprime and home-equity products through our wholesale channel.," the notice stated.
Subprime loans still in the pipeline must fund by May 30, the New York-based company said.
HELs in the pipeline must fund by July 15, and brokers can continue to submit conditions until then. The eZmanager will also be functional until July 15.
Chase had already been trimming its HEL and subprime operations.
The company laid off 450 HEL employees and eliminated 54 subprime processing jobs in March. JPMorgan reported in November that around 375 workers in retail nonprime lending received 60-day advance layoff notices in October, and 430 HEL processing positions were eliminated that same month.
Today's action impacted 132 Cleveland jobs, though 12 of those employees will be transferred to full-time positions in the mortgage group, Chase spokesman Tom Kelly told MortgageDaily.com. Sixty employees will be offered temporary assignments through at least Oct. 1, while another 60 were notified that their last day is July 15.
Kelly added that more employees may be impacted.