What We're Hearing

Now that June 30 has come and gone that means 2Q earnings reports will start flooding the airwaves. Credit Suisse is predicting that JPMorgan Chase -- the nation’s third largest residential servicer -- will basically break even in the quarter. It anticipates that the bank/investment bank will have “aggregate managed chargeoffs” of $7.2 billion, compared to $5.9 billion in the previous quarter. Analyst Moshe Orenbuch writes: “$2.7Bn of losses in retail financial services is primarily driven by $1.4Bn of home equity losses.” In early August Fannie Mae and Freddie Mac will report their results. It will be interesting to see what effect, if any, loan modifications will have on the GSEs’ bottom lines...