As a part of its goal of expanding its lending portfolio, JP Morgan Chase has purchased a loan portfolio from Citi. $ 3.5 billion was the cost of this deal although Citi has been working hard at selling $ 8 billion in troubled loans. These loans were for multi-family and apartment buildings meaning JP Morgan Chase essentially has a guaranteed loans coming in. Article resource – JP Morgan Chase purchases multi-family loans from Citi by Personal Money Store.
Faxless loan portfolio sold by Citi
Citi is trying to sell a ton of its loans and securities as part of a rebuilding strategy. $ 19 billion of these are sold to other companies willing to buy when Citi Holdings group has received the majority. Citi is trying to make its business smaller when selling securities at as high of a price as possible.
JP Morgan Chase got some credit loans
JP Morgan Chase bought a portfolio including 3,800 multi-family home loans from Citi. Behind Fannie and Freddie is JP Morgan Chase in third place as a large mortgage lender. This adds to the $ 300 million in multi-family loans that JP Morgan Chase has “in the pipeline.”.
Higher mortgage lending
Applications for new mortgages have been slowly but surely ticking up. New home loan applications in just the last week increased .6 percent. There are also more individuals not applying for loans although they may need them. Banks don’t want to lend although legislators are pressuring them into it. Banks really only want to give loans to applicants who are “credit worthy”. After years of economic downturn and job losses, there are fewer “credit-worthy” individuals than ever. Larger banks have had things shifted around with this huge multi-family loan purchase from JP Morgan Chase, and nobody knows if it will help increase lending in banks or not.
