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Chase Subprime - Wholesale - Subprime

2008-05-15

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In a conference call to its Home Equity and Subprime Wholesale divisions today, Chase announced the discontinuation of all products for those divisions and told employees it was shutting down both channels. "Third party origination of Home Equity and Subprime is totally done - elimination of channel and product, so no product migration to Prime Wholesale," a source told us.

It is not yet known how many in total will be affected by layoffs. A call scheduled for the Prime Wholesale division later today may result in "some sort of downsizing there also," our source said. More information to come.

Original Ailing/Watch Listing - 2008-03-31: We thought it was just a matter of right-sizing when we reported on the mid-March layoffs to Premium members. But this email just in makes it clear Chase BC belongs on our Ailing/Watch list:

"I know this does not come as a surprise but I submitted a loan last week to Chase BC. So far in 5 business days the file has been assigned to 3 different underwriters, none of the people on my contact sheet are there and the one person I spoke with said matter of frankly: Everyone is jumping ship. It really looks bad for the one trick pony that has become Chase BC."

Here's a few of the emails we received about Chase Subprime B2B's layoffs on 2008-03-19:

"Buying Bear Sterns for hundreds of millions is the front that they want to get headlines....not what's happening with sub prime. My opinion is.....that this way they can cut it down (sub prime) to a token 50 and you don't have to grab negative headlines for shutting down a channel. This way it quietly slips away unnoticed."
"Chase Subprime B2B. (Subprime) announce it will be downsizing over 250 AE's nationwide from 300. Only 50 will be left nationwide. The Westmont, IL Subprime Center is closing and 15 Underwriters from Woodcliff, NJ have been let go today as well. The only center that will be open is Deerfield Beach, FL where only 45 subprime employees will be left."
"i just got out of the severance meeting and only 2 managers in subprime B2B remain representing the 50 remaining AE's. One handling the east side of the Mississippi. The other handling the West. All sales managers and RPMs have been let go today. We have only been receiving 5 new loan submissions a day in our center and similar numbers in Deerfield Beach, FL due to eliminating all bank statement loans and stated loan products and reducing the LTV's on all loans in all states."
"Not merging with prime....remaining separate. New product not known yet, suspicions are they may get Fha added to supplement the left over sub prime."
We have several forum topics on Chase and their various units. Read more about the subprime group here. If you hear any news or can provide additional details drop us a line.


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Comments:

thebfgb at 18:22 2008-05-26 said:
Why isnt there a Chase Prime Wholesale topic? They are only going to be the number 1 wholesale company this year...... Permalink
mtg chick at 01:29 2008-05-28 said:
Why isnt there a Chase Prime Wholesale topic? They are only going to be the number 1 wholesale company this year......
IDK dude...according to some on here Chase is going to discontinue wholesale all together. Not that I buy into that **** but you already know that bout me. Permalink
thebfgb at 10:21 2008-05-28 said:
Why isnt there a Chase Prime Wholesale topic? They are only going to be the number 1 wholesale company this year......
IDK dude...according to some on here Chase is going to discontinue wholesale all together. Not that I buy into that **** but you already know that bout me.
Well since he uses the CEO's name (what a joke) maybe he knows something. Haha. He's just bitter cuz he got layed off and will spread any rumor he can because of this. And since he got layed off instead of going out when the ship sank all together it means he wasn't producing at that time they let him go. That should tell you something about him.

I would really love to hear his reasoning that Chase is leaving wholesale. All of the evidence suggests otherwise. They are hiring new AE's, managers, and DE underwriters left and right, they just launched a new platform, and they are ramping up the ops centers. Nobody is being layed off, no downsizing, no closings. Lastly they are currently the top producing wholesale lender and are expected to be number 1 this year just ahead of Wells.

Now of course anything is possible but there isn't one thing that would make someone think this at this point. Permalink

oldschoolmortgage at 18:39 2008-05-28 said:
I guess you missed Dimon's comments about mortgage brokers and the 4 times greater delinquency in wholesale over retail. He basically accused all brokers of being fraudmongers. Permalink
thebfgb at 19:14 2008-05-28 said:
I guess you missed Dimon's comments about mortgage brokers and the 4 times greater delinquency in wholesale over retail. He basically accused all brokers of being fraudmongers.
I guessed you missed the part about:

They are hiring new AE's, managers, and DE underwriters left and right, they just launched a new platform, and they are ramping up the ops centers. Nobody is being layed off, no downsizing, no closings. Lastly they are currently the top producing wholesale lender and are expected to be number 1 this year just ahead of Wells. Permalink

oldschoolmortgage at 09:22 2008-05-29 said:
I also noticed they posted for four subprime wholesale rep positions two weeks ago, about 1 week before they shut the whole thing down. Oops. From the surface the water can often look clearer than it really is. I am not trying to be negative, just pointing out that what they appear to be doing and what they do are often not the same thing. They put Sheehy in charge of the whole thing and he is a notorious correspondent guy, and now the old head of prime wholesale is "retiring" at the end of the year. Curious, No? Permalink
kuuner at 09:57 2008-05-29 said:
I also noticed they posted for four subprime wholesale rep positions two weeks ago, about 1 week before they shut the whole thing down. Oops. From the surface the water can often look clearer than it really is. I am not trying to be negative, just pointing out that what they appear to be doing and what they do are often not the same thing. They put Sheehy in charge of the whole thing and he is a notorious correspondent guy, and now the old head of prime wholesale is "retiring" at the end of the year. Curious, No?
That back and forth was like watching a tennis match. 40/15 Oldschool? Permalink
thebfgb at 10:36 2008-05-29 said:
How many ops centers have been shut down in prime? How many underwriters have been layed off in prime? How many producing AE's have been let go in prime? Permalink
thebfgb at 10:37 2008-05-29 said:
Obviously you were the last one to know he was retiring. This has been known for the last few years. Great scoop! Permalink

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Important: This company is on our list of lending operations that have "imploded". However, please note that "imploded" is a somewhat subjective and does not necessarily mean operations are ceased permanently: it can mean bankruptcy filing, temporary but open-ended halting of major operations, or "firesale" acquisition. All information here is provisional, and may contain inaccuracies (especially newer information). If you are planning on doing business with this company or any other one listed on this site, you should inquire with them directly on whether they can still meet your needs. Many are still operating in some capacity.