JPMorgan Chase Closing Warehouse Unit

JPMorgan Chase has decided to close its warehouse lending division and is giving its eight current customers a few months to secure new lines. Late on Tuesday a spokesman for JPM confirmed to National Mortgage News that the business — bought from Washington Mutual last spring — would be shuttered. (WaMu was sold to JPM in the fall with government assistance.) One advisor who's been tracking the warehouse issue, said he is not sure how large a player JPM is in terms of commitments but added, "This cannot help the industry." Earlier this year JPM began winding down its wholesale/broker division. Non-depository residential lenders that depend on warehouse credit are facing a funding crisis because so many banks and Wall Street firms have closed their warehouse divisions or scaled back credit. According to National Mortgage News there are about 10 banks or thrifts that are still active in warehouse lending compared to roughly 30 two years ago.