Chase Home LoansConsumer and Business Banking Segment JPMorgan Chase & Co.The bank announced on Thursday that it has increased the delivery guarantee from $5,000 to $20,000 until July 27, 2024.
The guarantee means that the bank promises to close on time on or before the contract closing date, otherwise it will pay the home buyer $20,000. This grant can be used to discount the coverage fee paid at closing, or to reduce the interest rate and down payment.
“Current market dynamics impact housing affordability for many Americans, and at the same time, competition will only intensify,” Sean Grzebin, head of consumer origination for home loans at Chase, said in a statement. “We are focused on what we can control in this environment that will support our clients all the way home. Increasing our closing deposit to $20,000 reflects our confidence in getting our clients into their new homes immediately.”
Chase offers down payment options as low as 3% and flexible credit guidelines to help expand home buying opportunities. It also offers a Home Buyer Grant, distributing grants of up to $7,500 in eligible areas. This grant can be combined with state and local homebuyer assistance to lower interest rates and/or reduce closing costs and down payment.
Chase CEO Jamie Dimon also recently cited streamlined regulations around origination, servicing and securitization as a solution to making housing more affordable.
“Mortgage regulation around origination, servicing and securitization could be simplified without increasing risk, thereby lowering the average mortgage loan,” the influential head of J.P. Morgan wrote in his annual letter to shareholders in April. 70 or 80 basis points.
“this urban institute It is estimated that such a reduction would increase mortgage originations by 1 million per year and help low-income families, especially those purchasing their first home, optimally begin building home equity,” he wrote.
Dimon further suggested a “candid review” of the thousands of new rules implemented since the Dodd-Frank Act was passed in 2010.
“While Dodd-Frank did some good things, shouldn’t we look at the vast overlapping jurisdictions of various regulatory agencies?” Dimon wrote. “This overlap creates difficulties not only for banks but also for regulators. All of this is achievable and, I believe, can be achieved with simpler rules and guidelines that will not stifle us critical banking system.
Just in the past year, Ministry of Justice Calls for real estate agent commissions to be completely staggered between sellers and buyers, and new appraisal bias protections established.
at the same time, Consumer Financial Protection Bureau (CFPB) targets “junk fees” on mortgage originations and borrowers’ payments on lenders’ title policies.
this federal housing finance agency (FHFA) has added new requirements to its service obligation program to govern Fannie Mae and Freddie Mac, and adjustments to the Loan Level Pricing Adjustment (LLPA). On the capital markets side, banks and warehouse lenders are considering new potential capital requirements arising from large-scale changes to the Basel III regulatory framework.
