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  • Financials Have Bottomed? Readers Say We're Nuts [View article]
    Wake me up when the banks have written off CDO's and off balance sheet SIV's to 10-20 cents on the dollar. Right now all they are doing is playing "hide the sausage" with this crap and not very well.

    Until, I trade what I see, not what I hope.

    I am in the mtg cap mkts and regardless of what Brown says, this is definatley not over.

    This is confirmed by a memo today from Chase to its mortgage brokers telling them they are exiting the jumbo business because it does not come with govt backing:

    CHASE JUMBOS ARE A GONER .


    Friday, August 1, 2008

    Today we are announcing the elimination of all Non-Agency/Jumbo Fixed and ARM (Amortizing and Interest Only) product offerings within our Wholesale Lending Business. We have made this decision based on a variety of reasons.

    First, we have seen a dramatic reduction in Jumbo volume levels over the past six months. To a point, it has become a very small percentage of our overall business. Secondly, Capital Markets continue to exhibit no interest in this product, as it sees safer and more liquid products such as Fannie Mae, Freddie Mac and Ginnie Mae Mortgage-Backed Securities as better investments. Thirdly, our delinquency performance on these loans has been substantially worse than both our expectations and standards allow. Due to all of these factors, we feel it is in our best interest to suspend these products at this time.

    It has been quite a tumultuous time in mortgage banking for the past 12 months. In fact, we are in the midst of the worst mortgage and real estate crisis in American history. Despite this, Chase continues to remain unwavering in its commitment to both mortgage lending, and specifically the Wholesale business.

    We will closely monitor changes in this offering, including performance and salability in Capital Markets, calibrate the product set as appropriate and possibly re-introduce it in the future.

    Thank you for your business and your continued loyalty to Chase.

    Sincerely,

    Rod Brace - Full Sig
    Aug 01 17:00 pm |Rating: 0 0 |Link to Comment
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