Article Image

IPFS News Link • Central Banks/Banking

JPMorgan Scrambles To Raise Mortgage Borrowing Standards...

• https://www.zerohedge.com, Tyler Durden

We went on:

Furthermore, why issue loans that will default in months if not weeks, just as bankruptcy courts fill up with millions of cases (assuming the coronavirus clears out by then, as the alternative is simply unthinkable - a default tsunami without any functioning Chapter 11 or Chapter 7 process) when JPM can simply stick to the 100% risk-free issuance of government-guaranteed small-business loans which pay a handsome 1% interest, especially if it makes JPM look patriotic by doing its duty to bail out America.

Over the weekend our skepticism was confirmed when Reuters reported that JPMorgan, the country's largest lender by assets and which will kick off earnings season tomorrow, will raise borrowing standards this week for most new home loans as the bank "moves to mitigate lending risk stemming from the novel coronavirus disruption."


midfest.info