JPMorgan Chase & Co, the second- largest US bank, ousted mortgage chief David Lowman after it overcharged active-duty military personnel on loans and improperly foreclosed on other borrowers.
“Dave Lowman and I have decided he will leave the firm,” Frank Bisignano, the head of home-lending, said in an internal employee memo obtained by Bloomberg. JPMorgan has been taking steps this year to repair its mortgage unit, which posted at least $3.3 billion in losses during the first quarter.
US banks are dealing with the backlash from a bust in housing as mortgage losses and related litigation suppress earnings. Home prices in 20 US cities fell 5.1 per cent in the first quarter.