J.P. Morgan Chase Bank Writes Down Mortgage Servicing Unit

April 19, 2011

“In a move that could send Jitters across the financial service markets, J.P.Morgan Chase bank has written down the value of their mortgage servicing business unit by $1.1 billion.
chase bank
This has resulted in first quarter losses to their retail financial services unit.
Wall Street analysts predict that this could have an adverse impact on the mortgage servicing operations of other major banks such as Wells Fargo, Bank Of America and Citi Bank.
Mortgage servicing business has not been profitable in the last 2 years because of the uncertain economic conditions and the meltdown of 2008.
One more important reason for this write down that is being told by the people in Chase is that the mortgage servicing business will not be profitable due to the new rules and restrictions imposed by the Federal Reserve.”

Additional information at:  http://www.marketwatch.com/story/once-hot-mortgage-servicing-goes-cold-2011-04-13


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