JPMorgan Chase plans to cut about 100 subprime mortgage jobs in California amid falling U.S. housing prices and tighter lending standards.
JPMorgan [JPM 43.96 1.61 (+3.8%) ] cnbc_quoteComponent_init_getData(“JPM”,”WSODQ_COMPONENT_JPM_ID0EQH15839609″,”WSODQ”,”true”); disclosed the cuts in a recent filing with the California Employment Development Department. The cuts, effective Dec. 15, will take place at JPMorgan’s subprime retail operations center in Ontario, California.
JPMorgan said it has reduced subprime originations and operations staff because of home price weakness and tighter credit standards. About 40 percent of JPMorgan’s 2006 subprime originations would not be approved under today’s standards, the bank said in a statement.
The bank has discontinued, for example, all subprime home equity loans. JPMorgan has said that it expects to originate about $1 billion subprime loans per month.