So much for The Fed’s attempts to lower rates and stimulate borrowing.
JP Morgan Chase is running away from the storm .. sort of.
NEW YORK (Reuters) – JPMorgan Chase & Co (JPM.N), the country’s largest lender by assets, is raising borrowing standards this week for most new home loans as the bank moves to mitigate lending risk stemming from the novel coronavirus disruption.
From Tuesday, customers applying for a new mortgage will need a credit score of at least 700, and will be required to make a down payment equal to 20% of the home’s value.
In other words, JP Morgan Chase is returning to good, old-fashioned lending standards … at least for the moment while jobless claims skyrocket.
JP Morgan Chase’s mortgage origination
Of course, JPMC can always originate a conforming mortgage that can be sold to Fannie Mae and Freddie Mac. I assume that their new underwriting standards apply to loans held in portfolio..
This is beginning to look like Fannie Mae and Freddie Mac are the last men standing.