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.