Bank of America, JPMorgan Chase and Wells Fargo may have to set aside an additional $30bn to cover possible losses on home-equity loans, an amount almost equal to analysts’ estimates of profit at the three banks this year. The cost of these reserves was calculated by CreditSights Inc., a New York-based research firm whose prediction almost four years ago proved prescient after banks reported unprecedented mortgage-related writedowns. Recognizing the home- equity loan losses is unfinished business from the housing bubble, CreditSights said in a March 29 report. Potential writedowns on the loans are casting a shadow over earnings, as analysts try to determine how much, and how quickly, loan-loss expenses will decline from the industrywide peak reached in June 2009. Banks led by New York-based JPMorgan begin reporting first-quarter results this week.
Diana Golobay was a reporter with HousingWire through mid-2010, providing wide-ranging coverage of the U.S. financial crisis. She has since moved onto other roles as a writer and editor.see full bio
Most Popular Articles
Latest Articles
Retirement plan participation reaches record high, but financial pressures persist
Nearly two-thirds of retirement plans now automatically enroll new participants at contribution rates of at least 4%.
-
Beazer refinancing raises Dream Finders deal cost by $53 million
-
With Warsh’s Fed overhaul, mortgage rates face a new risk
-
HUD aims to help multi-story manufactured housing go vertical
-
Intent beats volume: What real estate teams are learning from AI-powered follow-up
-
A search for a home in France shaped Real Brokerage CEO Tamir Poleg’s view on listing fragmentation
Diana Golobay was a reporter with HousingWire through mid-2010, providing wide-ranging coverage of the U.S. financial crisis. She has since moved onto other roles as a writer and editor.see full bio