Mortgage Point: Credit Quality Concerns Ripple Through Banking Sector
Credit quality became an increasing cause of concern among lenders and analysts after JPMorgan Chase CEO Jamie Dimon discussed his concern regarding recent bankruptcies of First Brands and Tricolor Holdings, a major provider of subprime auto loans. “My antenna…
Credit quality became an increasing cause of concern among lenders and analysts after JPMorgan Chase CEO Jamie Dimon discussed his concern regarding recent bankruptcies of First Brands and Tricolor Holdings, a major provider of subprime auto loans.
“My antenna goes up when things like that happen,” Dimon told analysts during a call with analysts. “And I probably shouldn’t say this, but when you see one cockroach, there are probably more… Everyone should be forewarned on this.”
Mortgage Point recently discussed national concerns over credit quality, even if currently concentrated in the auto sector, could have affects the mortgage market as well.
From her years of experience, Amy Pierce, Bank Strategic Solutions founder and President, provided her take:
“Mortgage delinquencies are rising driven by a combination of job losses, rising escrow costs (insurance rates rapidly increasing). Many buyers stretched to purchase at the height of housing prices post-Covid anticipating an ability to refinance at a lower interest rate in the future. Now they are stretched to make their payments and have little or no savings for unexpected expenses.”
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Visit Mortgage Point’s website here.
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