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According to reps from the bank Chase Wholesale is eliminating second mortgage products from its product offering. All loans need to be registered/submitted by end of business tomorrow. There has been wide concern and speculation about the value of second mortgage loan portfolios held by the big banks with the precipitous decline of housing prices nationwide. Many of the second mortgages issued over the last two to three years in bubble areas are now essentially unsecured.
You can’t blame Chase for making this move as the risk/reward ratio just isn’t there for them. No word on the retail channel. If you have any info let me know and I’ll update the post.
Update: Confirmed from numerous tipsters (thanks!)
An email from reps:
Good Morning,
First and foremost I would like to thank you for the business you have sent
and I appreciate the opportunity to have worked with you. Unfortunately,
given the market conditions Chase Home Finance has made the decision to
eliminate the Home Equity Channel. Effective end of day Friday May 16, 2008
Chase Home Equity will no longer accept applications for home equity
products. All new applications/registrations must be received by end of
day on Friday (5-16-08) and all pipeline deals must fund by 7/15/08. Rate
lock extensions will not be available.
