In an effort to lessen lending risks, the result of the COVID-19 pandemic impact on the U.S., JPMorgan Chase, the countries largest lender by assets, announced that effective Tuesday, April 14th 2020, it is raising the standards for most new home loans. The new standards include a credit score of at least 700 and will require a down payment equal to 20% of the home’s value. According to Amy Bonitatibus, chief marketing officer for JPMorgan Chase’s home lending business, “Due to the economic uncertainty, we are making temporary changes that will allow us to more closely focus on serving our existing customers.” The change highlights how banks are quickly shifting gears to respond to the darkening U.S. economic outlook and stress in the housing market, after measures to contain the virus put 16 million people out of work and plunged the country into recession.
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JPMorgan Chase to raise mortgage borrowing standards as economic outlook darkens