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Loans Made By Citi Bought By JP Morgan Chase
By Mike | August 24, 2010
As a part of its goal of expanding its lending portfolio, JP Morgan Chase has purchased a loan portfolio from Citi. The deal is worth about $ 3.5 billion, and is a part of the $ 8 billion in troubled loans Citi has been selling to others. The purchased loans are practically guaranteed pay day loans for JP Morgan Chase, as they’re loans for apartment and multi-family buildings.
Citi tries selling no fax loan portfolio
Citi is trying to sell a ton of its loans and securities as part of a rebuilding strategy. Citi Holdings group has been the recipient of some of these loans, when about $ 19 billion worth of products have been sold to other companies. Citi is selling securities at their value while trying to also slow business down.
Credit loans are what JP Morgan Chase purchased
3,800 multi-family dwelling home loans were a part of the portfolio bought from Citi for JP Morgan Chase. With this purchase and others, JP Morgan Chase has become the third-largest mortgage lender behind Fannie Mae and Freddie Mac. This adds to the $ 300 million in multi-family loans that JP Morgan Chase has “in the pipeline.”.
More mortgage lending
Mortgage applications are going up although it has been very slow. New home loan applications in just the last week increased .6 percent. The number of individuals who need a loan but are not applying for one, though, also seems to be rising. Though legislators are putting pressure on banks to increase their lending, banks are fighting back. Banks are trying to get “credit-worthy” applicants before making a loan. The economy being so bad has made it nearly extremely hard to find individuals who are considered “credit worthy”. 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.
Topics: Market News |
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