FEB 25, 2014 3:19pm ET

JPMorgan Slashes Mortgage Products Along with Jobs

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JPMorgan Chase is scaling back its mortgage products as the market cools.

The company plans to eliminate 22 of its 37 mortgage products and programs by the end of 2014, according to a Tuesday presentation to investors. It has already jettisoned 12 and plans to get rid of 10 more by the end of the year.

JPMorgan will also cut 8,000 jobs from its consumer and mortgage banking divisions this year, according to the presentation. The company attributed the decision to the refinancing slowdown.

Among the products on the chopping block are JPMorgan’s partnership rewards program, nonagency relationship credit program and second-lien home equity loan, according to the presentation.

The company is "committed to the mortgage business for the long run" despite current challenges facing the industry, mortgage banking chief executive Kevin Watters said to scattered laughter during the presentation.

Comments (3)
I have no idea what the reference to scattered laughter could be. A business that generates billions in annual profits is not immaterial. Maybe your correspondent could be a bit more accurate.
Posted by geoff s | Tuesday, February 25 2014 at 3:53PM ET
Geoff: There was indeed scattered laughter. The implication/subtext was, "no, we're not quitting mortgages, even though I'm complaining about how complicated that business is." The audio playback should be available soon if not already at JPM's investor relations site. Regards, Marc Hochstein, Editor, Mortgage Group, SourceMedia
Posted by Marc H | Tuesday, February 25 2014 at 4:31PM ET
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