JPMorgan Chase took a $1.3 billion writedown on the value of its subprime positions in the fourth quarter, including marks against its collateralized debt obligation portfolio. JPM -- which has been relatively unscathed by the subprime crisis (up until now) -- said it increased its loan loss allowances by $395 million in the quarter because of anticipated mark downs on high loan-to-value mortgages, including home equity loans. Even though JPM wrote down the value of its subprime CDOs, its mortgage banking division had net income of $332 million, it said. Its mortgage business was helped, in part, by a $499 million upward adjustment in the value of its mortgage servicing rights. Overall, the bank/investment bank earned $124 million in the quarter, an 88% drop from the same period last year.
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The massive mortgage business saw a first quarter profit mitigated by nearly $300 million in hedging losses.
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The Consumer Financial Protection Bureau has seen excessive property-inspection charges, fees that loan mods should eliminate and improper line-item labels.
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Michael Tannenbaum, whose experience in the financial services industry spans over 15 years, has a track record of helping companies scale and grow.
April 24 -
A majority of consumers earning more than $100,000 annually said they were concerned about their own ability to purchase a home, demonstrating how affordability issues are impacting those at many socioeconomic levels, the University of Michigan study found.
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The nonbank's results add to other indications that the first quarter's "higher for longer" rate scenario had an upside for efficient servicing operations.
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The latest rate increases contributed to a 1% drop in purchases from the previous week and 15% annually, according to the Mortgage Bankers Association.
April 24