“What if Atlas shrugged? The premise of the novel Atlas Shrugged is the question, “What if the producers of the world went on strike.” In a move that mirrors the novel, J.P. Morgan Chase has essentially stopped making FHA loans…

…Jamie Dimon has said that there is simply too much risk of Dept. of Justice lawsuits for the smallest mistake.  In Q2 2014, the bank made over 19,000 FHA loans.  In the second quarter of this year, they made only 340.  That’s a 98.4% drop.  What if Jamie Dimon shrugged?  He just did.”, Excerpt from October 2015 Mortgage Industry Newsletter

“Jamie Dimon is right to do this, but he has a lot of other non-mortgage lending businesses to fall back on…so it’s not a big, courageous move. However, as I have said on this blog before, no one should be originating FHA loans given the high risk of an arbitrary False Claims Act filing by the Justice Department. It’s not theoretical. It’s happened to many of the industry’s major and even minor players and cost the industry billions. If you are an owner of a bank or mortgage company why would you allow your board/management to originate FHA loans and put your entire institution at significant financial risk? And if you are a public shareholder, you are crazy to own shares in any financial entity that originates a material amount of FHA home loans. Jamie Dimon is right.” Mike Perry, former Chairman and CEO, IndyMac Bank

Posted on October 20, 2015, in Postings. Bookmark the permalink. 1 Comment.

  1. Very interesting and great questions, Mike….the regime lures you into their programs and then uses its power to steal shareholder assets via massive/punitive settlements to redistribute without formally taking over the company…all the benefits of ownership without having to make the investment….quite a deal.

    Mark Nelson 3256 Sitio Tortuga Carlsbad, CA 92009 760.473.7558 mnelson.doit@gmail.com

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