JPMorgan Commits $750 Billion to Housing Finance Through 2036
JPMorgan Chase announced Monday it will deploy $750 billion in housing finance over the next decade, a nearly 40% increase from the past ten years. The bank plans to finance the construction or preservation of 1 million affordable housing units and help 500,000 consumers buy homes. JPMorgan will also chair the US Chamber of Commerce’s Housing Advisory Council to advocate for pro-growth housing policies.
The commitment extends the bank’s American Dream Initiative launched earlier this year, which targets economic opportunity across housing, small businesses, and financial health. JPMorgan will deploy debt, equity, and grants for affordable housing projects, and encourages other banks to participate in the effort. The bank already holds more than half of its commercial real estate exposure in multifamily lending as of the first quarter. On the residential side, JPMorgan plans to hire 850 home-lending advisers and increase its residential mortgage origination by more than 45%.
High mortgage rates and a severe housing shortage have created affordability pressures heading into this year’s midterm elections. JPMorgan, already the largest home lender among its bank peers, sees an opportunity to gain market share. Michelle Herrick, head of commercial real estate at JPMorgan, said solving housing requires complex capital stacks and coordination among all constituents. Sean Grzebin, head of home lending, said the firm believes the system is safer when banks participate in mortgage origination.
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