NAMB Upset By Dimon Remarks

The National Association of Mortgage Brokers has responded angrily to 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. NAMB president Marc Savitt responded in a statement "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 urges 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 — Wall Street investment banks 'who are now out of business' did that." Mr. Dimon said the broker-originated product had two-to-three times the loss rates of the retail originations. The difference, he implied, is that the retail product was written by sales people who were sitting with the client.