Banks see a housing rebound
America's long-suffering housing market may be on the mend, two major banks said as they reported big jumps in profits.
JPMorgan Chase & Co. and Wells Fargo & Co., the nation's largest home lenders, each reported double-digit quarterly earnings growth Friday. The big jump in profit was thanks largely to a surge in their mortgage businesses, fueled by low interest rates and waves of refinancing.
It led JPMorgan Chief Executive Jamie Dimon, considered one of Wall Street's most high-profile bankers, to declare: "We believe the housing market has turned the corner."
Home lending is booming. The banks said profits on the sale of home loans were twice as high as traditional levels as the Federal Reserve kept interest rates at historical lows to help stimulate the economy.
JPMorgan and Wells Fargo, which emerged from the financial crisis as two of the strongest U.S. banks, control nearly half of the nation's mortgage volume. They reported a surge in revenue from mortgage origination and servicing during the last three months. Read the rest of the story at www.latimes.com.