JPM Talking to Quicken About Buying Its LOS Source Code?
The residential finance division of JPMorgan Chase is talking to Quicken Home Loans about purchasing the source code to its residential loan origination system, according to a technology official who claims to have knowledge of the situation.
At deadline both JPM and Quicken declined to comment to National Mortgage News.
The purchase price, said the official who works in the mortgage technology space, could be upwards of $50 million.
If JPM buys the LOS code it likely would be used only for Chase’s retail origination platform.
A few weeks back, NMN reported that Chase had planned to roll out a new mortgage origination technology platform next year, information that was disclosed in both a filing with the Securities and Exchange Commission and in a presentation made to stock analysts.
The SEC filing, however, contained no information on who the vendor might be and JPM declined to discuss the matter.
Quicken is not a technology vendor, which makes the deal somewhat unusual. Among residential funders, Chase ranks second, Quicken fourth, according to figures compiled by NMN and the Quarterly Data Report.