JPMorgan Chase is the nation’s second largest bank and one of the largest residential mortgage lenders in the country. Chase is currently the fourth largest mortgage originator in the United States. Approximately 40 percent of the company’s mortgage lending business stems from underserved markets. Underserved borrowers include minorities across the economic spectrum, low- to moderate-income individuals, new immigrants and borrowers in LMI communities. This market segment historically includes African Americans, Asians and Hispanics. In an attempt to increase its penetration in these lucrative markets, Chase hopes to expand its share in underserved markets to over 50 percent of its total mortgage business.

To achieve this goal, Chase Home Finance, the company’s mortgage division, created Chase DreaMaker™, a 10-year, $500 billion commitment to providing increased home financing to underserved borrowers nationwide. DreaMaker is the largest commitment of its kind ever made by a financial institution. While recognizing that minority and underserved markets offer the highest growth opportunities, Chase DreaMaker is also dedicated to helping make homeownership accessible to all members of society.

According to Banking on Technology: Expanding Financial Markets and Economic Opportunity, a recent report from The Brookings Institution, the Financial Services Roundtable, and the Ford Foundation, the financial services market for low-income customers may be as large as 35 million households out of the slightly more than 100 million total households in the United States. In the last two years, Chase has made an effort to reach these low-income customers by offering low or no down payment and closing cost programs, expanded credit guidelines for individuals with nontraditional credit profiles and multi-language loan documents. The company also plans to offer a wide range of services to low-income customers and potential customers, utilizing expanded language capabilities, referrals to credit-counseling agencies, and programs to increase financial literacy. In addition, Chase has doubled the number of salespersons in these markets, increasing the racial and ethnic diversity of the company.

Chase has established strategic alliances with housing finance partners such as Fannie Mae, Freddie Mac, Ginnie Mae, FHA, VA, Rural Housing Service, and the Federal Home Loan Bank. Chase has also expanded relationships with member-based organizations such as the AFL-CIO, 100 Black Men of Atlanta, National Council of La Raza, and the National Urban League. For example, to date, Chase has provided over $2 billion in mortgages to union members through the benefit arm of the AFL-CIO.

To provide guidance in helping the company identify issues, brainstorm solutions, and support the work with strategic alliance partners, Chase Home Finance established the National Housing Advisory Council – a group of influential leaders representing underserved segments including the African American, Asian, Hispanic, and gay and lesbian communities.

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