With Wells Fargo significantly cutting back and with all the problems in the IMB/correspondent space….JPM is uniquely positioned to be #1 in mortgage. Which would be a little ironic since Jamie doesn’t care for the biz.
Chase actually does have good rates especially on jumbo.
JPM is expanding its branch network and acquired First Republic.
The new mortgage king?
The few folks I know in JPM mortgage have had incredible years even in this down market.
"Chase pays probably a blended comp of around 55bps to its LOs. That’s pretty cheap production."
True, but layers and layers of overhead, especially in the call centers. Who are all these non-production people strutting around?
Also, a small broker shop is not paying the 12 weeks maternity/paternity leave that Chase offers, etc. Working for a bank may mean less in the pay envelope each week, but lots of benefits including inexpensive health ins and the famous LOA. Feels like lots of experienced HLAs have been working the LOA angle lately.
"Chase pays probably a blended comp of around 55bps to its LOs. That’s pretty cheap production.
Chase/Wells/Citi etc obviously have more overhead than a small correspondent or broker, but they also have economies of scale as it relates to pricing/selling to the agencies, plus they have servicing revenues.
Small correspondents and brokers pay maybe 90-110 bps to their folks and they can make it work. Not sure why Chase can’t at around 55bps"
They can, but they can pay even less than .55% to people in a call center, and they can also monitor all the calls and have more control over the process, something that Chase really wants to be able to do. They have had the "economics of scale" for a long time, but still have a very small portion of their customers who do a mortgage with them. Why? Chase pricing is not competitive and they have a (well earned) reputation of being conservative and screwing up the process. They have improved the process in recent years, but they still take a smug/arrogant approach to mortgage customers and that doesn't fly in a tight market when there are many more options. They "hold their nose" and do mortgages, but hate everything about it, and it shows.
“Chase is awful at mortgage and only offers it because it has to. Wells left the business for a reason, it is not a place to be for big banks. It is a regulatory nightmare and not profitable.
Expect to see most business go to the call centers. The only "field" loan officers will be at the largest branches in big cities. It's not if, it's when.”
Chase pays probably a blended comp of around 55bps to its LOs. That’s pretty cheap production.
Chase/Wells/Citi etc obviously have more overhead than a small correspondent or broker, but they also have economies of scale as it relates to pricing/selling to the agencies, plus they have servicing revenues.
Small correspondents and brokers pay maybe 90-110 bps to their folks and they can make it work. Not sure why Chase can’t at around 55bps
Chase is awful at mortgage and only offers it because it has to. Wells left the business for a reason, it is not a place to be for big banks. It is a regulatory nightmare and not profitable.
Expect to see most business go to the call centers. The only "field" loan officers will be at the largest branches in big cities. It's not if, it's when.
“More than 50% of my team makes minimum wage each month so far this year as they aren't meeting minimum funding requirements to get paid.”
What is the other 50% doing?
Jamie has said multiple times he hates the mortgage business
Not a good time to be in the mortgage business. Plus, the two biggest funders own the Cleveland Cavaliers and Phoenix Suns, respectively. Chase will always be in Home Lending...or, at least it feels like the commitment is there now.
More than 50% of my team makes minimum wage each month so far this year as they aren't meeting minimum funding requirements to get paid.
Manila will be the new home base. Are they ready for it? No. Are we in the u.s. prepared to lose our jobs to the Philippines? Also no. Keep your eyes open people.