JPMorgan Chase & Co. is vowing to funnel $750 billion into housing over the next decade, nearly 40% more than it has over the past 10 years, as part of Chief Executive Officer Jamie Dimon’s push to invest more money in US communities.
The firm plans to finance the construction or preservation of 1 million affordable housing units and help 500,000 consumers buy homes, according to a statement Monday. It will also advocate for “pro-growth housing policies,” including by joining the US Chamber of Commerce’s Housing Advisory Council as chair.
JPMorgan’s plans mark the latest facet of its “American Dream Initiative” announced earlier this year. The program aims to expand economic opportunity and spans across six focus areas, including housing, small businesses and financial health.
See more: Housing Starts Jump 19% in June
A severe housing shortage in the US has pushed prices up, contributing to affordability concerns that are top of mind for voters as this year’s midterm elections approach. Mortgage rates at the highest level in a year are also squeezing buyers.
“Solving housing is complex: the capital stacks are complex, the local discussions are lengthy to be well thought out, and it takes all constituents rowing in the same direction,” Michelle Herrick, JPMorgan’s head of commercial real estate, said in an interview. “We can see a lot of people looking at trying to tackle a problem and we want to get in there and offer what we know.”
Multifamily lending accounted for more than half of JPMorgan’s commercial real estate exposure at the end of the first quarter. As part of the bank’s expanded affordable housing financing commitment, it will deploy debt, equity and grants, as well as partner with other players in the industry. Herrick said JPMorgan encourages working with other banks in the effort.
On the residential side, JPMorgan — already the largest home lender among its bank peers — plans to hire 850 home-lending advisers as it seeks to increase residential mortgage by more than 45%.
“We’re out trying to grow and take market share,” Sean Grzebin, head of JPMorgan’s home-lending unit, said in an interview, adding that he thinks his firm can do so quickly. “We think the system is safer when banks participate.”
A message from Advisor Perspectives and VettaFi: Discover something new! Click here to register for our upcoming webcasts.
Bloomberg News provided this article. For more articles like this please visit
bloomberg.com.
More Insurance & Annuities Topics >
