Categorized | Finance and Mortgage

JPMorgan Chase CEO Believes He Can Fix the Housing Market

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Jamie Dimon, the CEO of JPMorgan Chase, believes that fixing the housing market is as simple as locking mortgage lenders and regulators behind closed doors until a solution is figured out. He feels that there are issues that can be addressed by both parties that could essentially bring the residential real estate market out of its slump.

According to Dimon, many of the regulatory policies that manage the housing and mortgage markets have actually hindered recovery around the globe. The United States housing market, for example, has been unable to recover from its current struggles due to conflicts between state laws and federal refinancing policies.

Some analysts feel that Dimon is lobbying to take the job of leading a reform team to fix the industry. Dimon, however, has not expressed any interest in taking that position. He has said, though, that the housing market needs both leadership, and also a greater privatization of mortgage bonds.

Dimon believes that the conflicting laws have led to inconsistencies in policies, and it is those inconsistencies that have prevented any kind of true recovery from taking place. He claims that, although the United States government is critical of banks for their failure to lend to potential homebuyers, the banks have no choice due to the underwriting rules that are currently being enforced. Until those underwriting rules change, it is unlikely that there will be a recovery in the housing market. Dimon has made it clear that consistency among government policies and bank policies is essential for the situation to improve.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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