A new report highlights JPMorgan Chase Bank, N.A.’s, strength in originating prime jumbo home loans, though there is some room for improvement.
During the past five years, the residential origination division of the New York-based company has originated more than 90,000 prime jumbo mortgages.
The jumbo loans were either originated through the retail/consumer-direct channel
or acquired through financial institution’s correspondent channel.
That is according to an assessment from Moody’s Investors Service, which affirmed Chase’s standing as a strong originator of prime jumbo loans.
The ratings agency highlighted the lender’s strong loan performance, noting that just 113 of the jumbo loans it has originated since February 2011 were at least 60 days past due as of Sept. 30, 2015.
In addition, according to Moody’s, repurchase requests have been made on just nine of its jumbo mortgages.
“We assess Chase’s ability as above average,” the report stated. “The assessment is driven by Chase’s strong sales and marketing practices, strong property valuation, strong closing policies and procedures, and strong credit risk management.”
But Moody’s also noted that there is room for improvement at Chase by
implementing more stringent criteria for borrower credit histories. This might include not allowing late payments on past mortgages/rental payments and requiring longer waiting periods after foreclosure and bankruptcy.
In addition, Moody’s indicated that its assessment of Chase would improve if quality-control results played a bigger role in underwriter compensation.