NAMB Slams JPM Over Wholesale Exit

Taking umbrage at both JPMorgan Chase's decision to exit the wholesale channel and blaming brokers for poor loan quality, the current president of the National Association of Mortgage Brokers declared that the bank "will have a new competitor" on its hands. In an interview with National Mortgage News, NAMB chief Marc Savitt said, "Chase just dissolved a partnership. We are going to go out there and compete against them using other relationships. We will be using the products of others to go against their products." Mr. Savitt was also angered by comments a JPM spokeswoman made concerning retail loan quality being superior to wholesale. "Chase has told me that in person too -- that their retail delinquency rates are lower," he said. "But brokers do not approve loans. Brokers do not underwrite loans. Those decisions are made by the underwriter. That would be Chase." According to figures compiled by NMN and the Quarterly Data Report, Chase is the nation's largest wholesale funder (as of the third quarter). But Mr. Savitt said he is not particularly concerned about another large wholesaler exiting the market. "There are other lenders with programs out there," he said. He added that as recently as December a representative from Chase told him the bank would be remaining in wholesale. But a source at the bank said the move away from wholesale had been in the works for several months.