JPMorgan Chase

The result could play a big role in whether banks see more regulatory relief next year or policymakers can coalesce around a housing finance reform plan.

Rising mortgage interest rates not only will continue to constrain banks' once-robust revenue from this business, they will also affect existing borrower credit quality, a report from Moody's said.

Providing borrowers with an incentive to create financial reserves after closing is a better tool to prevent mortgage loan defaults than measures taken at underwriting, a JPMorgan Chase Institute study declared.

Mortgage-related earnings at five banks were lower due to the effect of higher interest rates on loan volume this year, even though late-season homebuyers improved consecutive-quarter origination numbers at three companies.

JPMorgan Chase is eliminating 400 positions in its mortgage banking unit, the latest lender to trim staff as a result of lower-than-expected demand in 2018.

Residential mortgage loan exchange provider Maxex has closed a new $38 million funding round it will use to improve and expand various aspects of its platform.

Moody's Investors Service downgraded JPMorgan Chase's prime jumbo mortgage originator assessment to its second-highest rating, citing the bank's growing reliance on correspondents with delegated underwriting authority and shortcomings in its technology infrastructure.

Nearly half the loans were derived outside J.P. Morgan's retail channel, a level not seen in its conforming and prime jumbo securitizations since 2017.

This year's sluggish spring home buying season led to generally softer mortgage-related second quarter results at Wells Fargo, JPMorgan Chase, Citigroup and PNC Financial Services Group, but First Republic Bank bucked the trend.

Banks could shed as much as 20 million square feet of office space over the next five years as they shift many functions to high-tech operations centers in markets with cheaper rents.