JPMorgan Chase - Warehouse - Warehouse Lending
Structured Finance News ran the 2009-02-25 article from National Mortgage News announcing that JPMorgan Chase would be closing its warehouse lending division.
"Late on Feb. 24 a spokesman for JPM confirmed to National Mortgage News that the bank's warehouse business - bought from Washington Mutual last Spring - would be shuttered. Eight non-banks currently have lines of credit with JPM."
This brings the total count of remaining lenders offering warehouse lines-of-credit down near the single-digit range. Chase spokesperson Tom Kelley could not disclose the total dollar amount of their warehouse commitments, but indicated their client base had always been a relatively low number. The warehouse division was actually purchased from WaMu earlier last year prior to JPM's acquisition of that bank in September of 2008. According to Kelley, there were "a couple dozen" employees in the division, and most if not all would likely move to other areas within JPM's operation.
An exact target date for the shutdown was unavailable. Clients are being given "several months" to obtain facilities elsewhere, Kelley said.
I_Like_2Mortgage at 07:55 2009-02-27 said:IT EXPLAINS THE SPIKE IN INTEREST RATE. IT EXPLAINS LOANS CLOSING BUT NOT FUNDING. THE MYSTERY IS FINALLY OVER. 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.