Rate-starved US banks happily gobble up mortgage business

New York

JUST as mortgage bankers were preparing for the end of a historic boom driven by low interest rates, borrowers have begun knocking at their doors again.

In earnings reports last week, JPMorgan Chase & Co, Wells Fargo & Co and Citigroup Inc said they originated US$94 billion worth of new mortgages during the second quarter in their core mortgage operations, an increase of US$23 billion, or 31 per cent, over the first quarter.