JPMorgan seeks to regain its footing in US mortgage market

New York

AFTER having to stomach US$31 billion worth of mortgage-related legal settlements with US government agencies a few years ago, JPMorgan Chase & Co swore off a huge swath of the home loan market.

Gone were borrowers with anything much less than pristine credit ratings. The cost of managing delinquent accounts and the threat of huge legal penalties were written off as not worth the risk. Better instead to focus on wealthier customers who wanted jumbo-sized loans that are beyond the reach of US government housing finance agencies.