This could lead to one million more originations per year: JP Morgan CEO Jamie Dimon

🌞 Buongiorno. Let's get to it. Today’s newsletter is 612 words, a 2.5-minute read.

1. CMG Mortgage buys Norcom Mortgage's retail division

CMG Financial is acquiring the retail arm of Norcom Mortgage. The financial details of the deal were not disclosed by either company. The 25-branch addition will enhance CMG’s northeastern presence from Maryland to Maine.

“Norcom Mortgage has made the strategic decision to focus on and continue to grow our wholesale platform as TPO GO,” said Norcom President Phil DeFronzo. “We are very excited to have our amazing group of retail originators join the CMG family. CMG’s superior marketing platforms, technology, and product menu will enable our team to thrive and provide the best customer service in the industry.”

2. Charted: One-year change in active housing inventory for sale

3. Catch up quick

🏡 Where high mortgage rates are having the smallest impact. (Zillow)

💸 The true cost of homeownership (2024 data). (Real Estate Witch)

🔐 Mortgage lock volume jumped 15.36% in March month-over-month. (MCT)

😬 Cheap mortgages deter workers from relocating for $250,000 jobs. (Bloomberg)

4. JP Morgan CEO calls for the simplification of mortgage regulations

Jamie Dimon, CEO of JPMorgan Chase, advocates for simplifying mortgage regulations to make housing markets more efficient.

In his annual shareholder letter, he suggests that simplification of mortgage regulations around origination, servicing, and securitization could reduce the average mortgage cost by 70 or 80 basis points, which could lead to an increase of one million mortgage originations yearly, especially benefiting low-income families in buying their first homes.

Dimon criticizes recent moves like the DOJ's real estate commission structures, new appraisal methods, and added mortgage fees. He also argues that the Basel III endgame rules could make mortgages and small business loans costlier and less accessible.

5. Morgan Stanley AML probe draws SEC, OCC, Treasury focus

Multiple U.S. regulators have joined the probe into Morgan Stanley’s efforts to prevent potential money laundering by its wealth clients, according to a report from The Wall Street Journal.

The Securities and Exchange Commission and other offices within the Treasury Department are examining whether the bank has adequately investigated the identities of high net-worth clients and the sources of their wealth and implemented robust controls to mitigate money laundering risks. That’s in addition to the Federal Reserve, which initiated a similar investigation on the lender last year.

6. Average cost of construction for a new U.S. single-family home

According to a survey by the National Association of Home Builders (NAHB), the average sales price of single-family homes in 2022 was $644,750 and includes costs for construction, the finished lot, financing, overhead and general expenses, marketing, sales commission, and profit.

Total construction costs for the “average” single-family home included in the survey were $392,241. The pie chart below breaks out those costs for the “average” home.

P.S. There's a new $6000-a-flight airline for dogs.

You’re all caught up. See you on Wednesday!

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