JPMorgan CFO: Forced mortgage repurchases stabilize
(Reuters) - JPMorgan Chase & Co. said it had reached a turning point in demands to buy back mortgages, allowing it to reduce its reserve for repurchases last quarter by about $215 million.
JPMorgan and other big U.S. banks have been forced contractually repurchase billions of dollars of mortgages sold to Fannie Mae, Freddie Mac and mortgage-backed securities investors because of misrepresentations of credit quality.
The nation's biggest bank has repurchased about $3.4 billion of mortgages, but "we have reached the inflection point," Chief Financial Officer Doug Braunstein said in a call with bank analysts on Friday. "The net repurchase number should be approximately zero for the next quarter."
His remarks came as JPMorgan announced second-quarter results and explained the multibillion-dollar loss this year in its Chief Investment Office.
(Reporting By Jed Horowitz in New York; Editing by Lisa Von Ahn)
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