JPMorgan Chase Stops Use Of Outside Brokers

JPMorgan Chase & Co. has stopped its wholesale lending operations and will no longer underwrite prime mortgages originated through correspondent channels, according to published reports.

The company, which acquired much of Washington Mutual Inc.'s business operations in September 2008, stopped using third-party brokers for subprime loans about a year ago.

The Wall Street Journal published online an excerpt from an internal memo written by JPMorgan's mortgage business head, Dave Lowman, in which Lowman explained that the company believes its customers are "best served when a mortgage officer works directly with them."

SOURCE: Wall Street Journal


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