JPMorgan Chase kicked off earnings season for mortgage lenders by reporting a 29% increase in mortgage origination volume in 2025 compared with the prior year. The bank originated $52.8 billion across its retail and correspondent channels, up from $40.8 billion a year earlier, according to filings with the Securities and Exchange Commission (SEC).
Fourth-quarter mortgage activity came in modestly “ahead of expectations”, according to analysts from Keefe, Bruyette & Woods (KBW). Loan volumes rose 15% quarter over quarter to $16 billion, compared with the Mortgage Bankers Association’s forecast for roughly flat production.
“Net/net, we would characterize the quarter as roughly in line with higher volumes, modestly lower GOS margins, and fairly flat MSR valuations,” the analysts wrote.
JPMorgan continues to skew origination toward its higher-margin retail channel. Retail production totaled $33 billion in 2025 and $10.4 billion in the fourth quarter, compared with $25.5 billion for the year and $5.6 billion in the quarter through the correspondent channel.
KBW analysts noted that gain-on-sale margins declined 6 basis points quarter over quarter to 118 bps, despite retail volume increasing to 65% of total production from 60% in the third quarter. “We think the slightly lower GOS margin at JPM, despite higher retail volume, is a modestly negative read-through.”
JPMorgan’s home lending segment generated $1.24 billion in revenue in the fourth quarter, compared with $1.26 billion in the prior quarter. For the full year, revenue totaled $4.9 billion, nearly flat from $5 billion in 2024.
Mortgage servicing revenue fell to $156 million from $199 million in the third quarter, while the bank’s mortgage servicing rights (MSR) book value remained around $9 billion.
Overall, JPMorgan Chase reported a 7% year-over-year decline in profits to $13 billion, while revenue increased 7% to $46.7 billion.
In remarks on the company’s performance, CEO Jamie Dimon cited years of investment, a favorable market backdrop and a recent deal to issue the Apple Card, adding that the U.S. economy remains “resilient.”
“While labor markets have softened, conditions do not appear to be worsening. Meanwhile, consumers continue to spend, and businesses generally remain healthy. These conditions could persist for some time, particularly with ongoing fiscal stimulus, the benefits of deregulation and the Fed’s recent monetary policy,” Dimon said. “However, as usual, we remain vigilant, and markets seem to underappreciate the potential hazards—including from complex geopolitical conditions, the risk of sticky inflation and elevated asset prices.”
Source: housingwire.com
