Chase Wholesale Eliminates 2nd Mortgages
Posted by Morgan on May 15th, 2008
2008
May 15
According to reps from the bank Chase Wholesale is eliminating second mortgage products from its product offering. All loans need to be registered/submitted by end of business tomorrow. There has been wide concern and speculation about the value of second mortgage loan portfolios held by the big banks with the precipitous decline of housing prices nationwide. Many of the second mortgages issued over the last two to three years in bubble areas are now essentially unsecured.
You can’t blame Chase for making this move as the risk/reward ratio just isn’t there for them. No word on the retail channel. If you have any info let me know and I’ll update the post.