JPMorgan Chase & Co. has stopped originating nonagency jumbo mortgages through brokers, citing lower volume, higher delinquencies, and a lack of investor interest in securitizations.
The New York banking company announced the decision to brokers on Friday in yet another sign that home lenders are increasingly cautious when it comes to originating loans through intermediaries.
Tom Kelly, a spokesman for JPMorgan Chase, said that the company will continue to originate jumbo loans through its retail channel. "The only thing we're doing through the wholesale channel is conforming," he said.
In May, JPMorgan Chase stopped offering subprime and home equity loans through brokers, joining a growing list of lenders that had cut back on third-party mortgage originations.