Mortgage Daily

Published On: April 14, 2010

Despite a jump in negotiated transactions, residential originations fell for the third consecutive quarter at JPMorgan Chase & Co. The culprit was the correspondent channel, where volume tumbled $4 billion and appears headed lower. Meanwhile, quarterly delinquency improved.

First-quarter residential originations were $32.0 billion, earnings data released today indicated. Volume was lower than the fourth-quarter 2009’s $35.2 billion and the first-quarter 2009’s $38.6 billion.

Mortgage originations accounted for $31.7 billion of first-quarter activity, lower than $34.8 billion the prior period and $37.7 billion the prior year. Home-equity loan production eased to $0.3 billion from the fourth quarter’s $0.4 billion and last year’s $0.9 billion.

Retail originations represented $11.4 billion of first-quarter fundings, down from $12.3 billion. Wholesale production was $0.4 billion, lower than the fourth quarter’s $0.6 billion.


“CNT negotiated transactions” accounted for $3.9 billion — surging from $1.9 billion. But correspondent business tumbled to $16 billion from $20 billion.

Loan application volume fell to $39 billion from the fourth quarter’s $43 billion, suggesting business in the current period is down. Retail applications rose nearly $3 billion, but correspondent applications plummeted more than $7 billion.

The New York-based bank’s third-party servicing portfolio finished the first quarter at $1.0750 trillion, lower than $1.0821 trillion at the end of last year and $1.1488 trillion 12 months earlier.

Mortgages owned within financial services were $246.6 billion at the end of last month, including $79.3 billion in purchased credit-impaired loans from JPMorgan’s acquisition of Washington Mutual Bank. The latest total was lower than $251.8 billion at the end of December and $280.4 billion a year ago.

March 31 holdings included $123.7 billion in HELs, $66.0 billion in prime mortgages and $19.0 billion in subprime mortgages. Option-payment adjustable-rate mortgages accounted for another $36.9 billion.

Excluding purchased credit-impaired loans, delinquency of at least 30 days on real estate-secured loans was 7.28 percent, falling from 7.73 percent. A year previous, the late-payment rate was 5.87 percent.

Net income from mortgage banking and other consumer lending was $257 million, falling from $730 million a year earlier. A decline in noninterest revenue and an increase in noninterest expense drove the deterioration.

JPMorgan earnings edged up to just over $3.3 billion from just under $3.3 billion in the fourth quarter and jumped from $2.1 billion in the first-quarter 2009.

Chase employed 112,616 people in its retail financial services unit as of March 31, more than 108,971 on Dec. 31 and 100,677 on March 31, 2009.

Company-wide headcount finished last month at 226,623, higher than 222,316 three months earlier and 219,509 one year earlier.

Tools for Your Next Big Decision.

Amortization Calculator

Affordability Calculator

Mortgage Calculator

Refinance Calculator

FHA Mortgage Calculator

VA Mortgage Calculator

Real Estate Calculator


Pre-Approval Resources!

Making well educated decions in a matter of minutes and stay up to date on the latest news Mortgage Daily has to offer. Read our latest articles to stay up to date on what’s going on…

Resource Center

Since 1998, Mortgage Daily has helped millions of people such as yourself navigate the complicated hurdles of the mortgage industry. See our popular topics below, search our website. With over 300,000 articles, we are guaranteed to have something for you.

Your mortgages approval starts here.

Add 1-2 sentence here. Add 1-2 sentence here. Add 1-2 sentence here. Add 1-2 sentence here. Add 1-2 sentence here.

Stay Up To Date with Today’s Latest Rates


Today’s rates starting at


5/1 ARM
$200,000 LOAN

Home Refinance

Today’s rates starting at


$200,000 LOAN

Home Equity

Today’s rates starting at


$200,000 LOAN


Today’s rates starting at


$200,000 LOAN