Banc One Corp. and Chemical Banking Corp. are among the banks jostling for position in the fledgling commercial real estate securitization market.
Banc One recently entered into a letter of understanding with affiliates of J.P. Morgan & Co. under which the New York bank would buy and later securitize long-term real estate loans originated by Banc One units.
Officials of J.P. Morgan, which has traditionally acted as an investment banker rather than a commercial real estate lender, declined to comment on the program.
Michael J. Spoor, chief executive officer of Banc One Management and Consulting Services, Houston, said his unit would be master servicer and special servicer for the program.
The "conduit," he said, would provide "another arrow in the quiver" of the 88 banks in the Columbus, Ohio, holding company's network.
"This really allows Banc One to provide seamless financing from construction loan to long-term mortgage," Mr. Spoor said.
He declined to estimate how large the program would be.
At Chemical, a newly formed subsidary, Chemical Commercial Mortgage Banking Corp., is planning to issue securities in the first half of next year backed by a pool of long-term mortgages on apartments and retail and industrial space.
The loans, ranging from $2 million to $15 million, are being originated by the bank's units in New York, New Jersey, and Texas.
Joseph A. Deluca, executive vice president of commercial real estate finance, said one of Chemical's objectives is to build a servicing and administrative business.
The bank's short-range expectation, he said, is to originate $300 million to $500 million of loans a year.
Ultimately, Mr. Deluca said, the program could securitize up to $1 billion a year.