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Chase Prime - Wholesale - Agency, A-paper
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2008-09-23
stories: nytimes.com
Current and former Chase employees have contacted us about conference calls going on today for Chase's Prime Wholesale lending unit.
"One of my friends that is still there on the Wholesale Prime side just called and said they have a conference call this morning that sounds like they are going down... talking severance packages, etc. She took her package and ran."
Another tipster suggested this may just be a dramatic downsizing, "reducing their workforce by 90%."
It wasn't long before we received the official announcement to Chase brokers. The ChaseLoanCenters are being consolidated to four locations from eight. Forum posts indicated "79 AE's" and "some Regional Managers" were let go in conjunction with the office closures, leaving 275 AE's. Staffing will be increased at the remaining locations in Dallas, TX; Charlotte, N.C.; Cleveland, OH; and Orange, CA to absorb processing volume.
The following offices will be closing: Garden City, N.Y.; Westmont, Ill.; Tampa, FL; and San Ramon, CA.
Chase Prime cut back to bare-bones Agency lending in early August with this broker announcement, eliminating Jumbos and all non-Agency products. In a NY Times article, Chairman & CEO Jamie Dimon said Chase "expected losses on prime loans at his bank to triple in the coming months and described the outlook for them as "terrible."" An email cover for the 2008-08-01 announcement offered this explanation for the product cuts:
"First, we have seen a dramatic reduction in Jumbo volume levels over the past six months. To a point, it has become a very small percentage of our overall business. Secondly, Capital Markets continue to exhibit no interest in this product, as it sees safer and more liquid products such as Fannie Mae, Freddie Mac and Ginnie Mae Mortgage-Backed Securities as better investments. Thirdly, our delinquency performance on these loans has been substantially worse than both our expectations and standards allow."
Previously, we imploded the Home Equity and Subprime divisions of Chase Wholesale in mid-May. Speculation about the future of Chase Prime Wholesale on our Discussion Forums arose soon afterward. Wrote one tipster, "JP Morgan Chase only does a few million a month in Prime wholesale." That doesn't sound like a volume level capable of sustaining the channel going forward.
Stay tuned for updates, and contact us if you can provide more details. View the mose recent discussion about Chase Prime Wholesale on our forums here.
permalink to this record | forum thread
tryingtolend at 01:32 2008-09-24 said:
Does anyone have any insight? Thank you. Permalinkfactchecker at 18:01 2008-09-24 said:
why does the implode notice say Chase is only doing a few million a month in wholesale? Clearly one single rep would do couple million a month. Any published reports of ranking shows the volume being done. Odd to take that note from a tipster and publish it. Maybe I misread that or took out of context. To answer the question posted above there is a thread started by BFGB in the forum which has a few details but there is not much to learn. pretty straight forward announcement to me. Permalinkmtg chick at 21:30 2008-09-26 said:
TIC TOC, TIC TOC.... :twisted:You are sooooooooo bad. Don't you feel bad in some small way that people are losing their jobs with all this mess going on??? C'mon...I know some part of you has to feel bad about it. Permalink
thebfgb at 23:08 2008-09-26 said:
TIC TOC, TIC TOC.... :twisted:Just wait till your bank disappears - TIC TOC TIC TOC. 8) It will probably get gobbled up by Chase. Permalink
thebfgb at 23:13 2008-09-26 said:
why does the implode notice say Chase is only doing a few million a month in wholesale? Clearly one single rep would do couple million a month. Any published reports of ranking shows the volume being done. Odd to take that note from a tipster and publish it. Maybe I misread that or took out of context. To answer the question posted above there is a thread started by BFGB in the forum which has a few details but there is not much to learn. pretty straight forward announcement to me.Yeah not sure what their tipster was talking about on that comment. Or maybe they just wrote down incorrect information. I bet even JDIMON's small bank can hit a couple million a month. Permalink
JDIMON at 10:03 2008-09-27 said:
I do feel bad, it happened to me, remember? My comments are directed SOLEY at THEGBFG or whatever. I will savor the moment I can tell him 'I told you so', cause NObody likes a wisea$$ know it all. Any week now, TIC TOC, TIC TOC... PermalinkTIC TOC, TIC TOC.... :twisted:You are sooooooooo bad. Don't you feel bad in some small way that people are losing their jobs with all this mess going on??? C'mon...I know some part of you has to feel bad about it.
mtg chick at 10:14 2008-09-27 said:
And do you honestly think BFGb will ever tell ANYONE on here if he was ever let go from Chase?????? NOT.................... It will go something like this...................he will announce that he has chosen to move to another lender or job because of the merger between Chase and WAMU. He will NEVER give ANYONE (especially you) the satisfation of letting anyone know that he was given a pink slip. He would rather have his eyes yanked out and be tortured for hours before hearing you tell him "I told you so" If thats what you're waiting for you will be waiting a long time Jdimon. :roll: Permalinkadd a comment | go to forum thread
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