Insight and investigations from our expert reporters
The U.S. mortgage business is a “mess” in need of overhaul, JPMorgan Chief Executive Jamie Dimon reckons.
(See our special report on Dimon today: “Jamie Dimon wants some R-E-S-P-E-C-T”)
Of course, his own bank is the third-largest U.S. mortgage lender. And JPMorgan is sitting on billions in not just prime mortgages, but risky home-equity loans too.
But Dimon has made a career out of being the one Wall Street banker who likes to stand up, stick up for his views and tell it as he sees it. He can talk in a way that resonates with the mood of the country. He can cross the divide between Wall Street and Washington D.C. And while his peers might talk about doing God’s work, Dimon will admit making mistakes.
Shares Lender Processing Services Inc fell as much as 9.8 percent at one point on Monday after Scot Paltrow’s special report said the company, which helps banks manage mortgage foreclosure documentation, faces more serious legal troubles than it previously disclosed. The stock closed 5.77 percent down for the day.
Read the full report, “Legal woes mount for a foreclosure kingpin,” in multimedia PDF format here.
By Matthew Goldstein
The $425 billion in home equity loans and other second mortgages sitting on the balance sheet of the four biggest U.S. commercial banks is the big gorilla in the room that no one wants to talk about. (See our latest special report here.)
The banks, for their part, generally have downplayed concerns about so-called second liens on mortgages. Bankers point out that less than 5 percent of home equity loans and other second mortgages are delinquent and lenders have been taking charge-offs for second liens deemed uncollectable.