JPMorgan to Sell Mortgage Debt With Weaker Repurchase Rules
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JPMorgan Chase & Co. is planning to sell securities backed by $616 million of new U.S. home loans that don’t have government support, its first offering in the so-called non-agency market since the financial crisis.
The bonds are made riskier by the New York-based bank and other originators of the mortgages offering weaker promises to repurchase misrepresented loans than those on similar deals, Fitch Ratings said today in an e-mailed report. Lenders and bond sponsors have been seeking to trim potential liabilities in such deals as the market revives after suffering billions of dollars of losses from debt sold before the collapse in home prices.