NAMB Mad at JPM's Dimon over Broker Smear

The National Association of Mortgage Brokers has responded angrily to broker-related comments made by JPMorgan chairman and chief executive Jamie Dimon at the U.S. Chamber of Commerce Capital Markets Summit. Mr. Dimon said not shutting Chase's wholesale channel sooner was the worst mistake of his career. In a statement NAMB president Marc Savitt said, "It is disappointing to once again refute senseless attacks on the mortgage brokerage industry based on misinformation. Mr. Dimon's comments clearly reflect his poor understanding of the mortgage industry and the role of the mortgage broker." NAMB said it is urging Mr. Dimon "to recognize that mortgage brokers do not create loan products, do not determine the automated underwriting systems used to qualify borrowers, do not underwrite the loans, and do not approve borrowers for those loans." The JPM chief said broker-originated loans had loss rates that were two- to three-times higher than retail funded loans. The difference, he said, is that retail mortgages were written by sales people who were sitting with the client.