Big banks are making fewer and fewer mortgage loans despite the lack of foreclose risks to them; they are choosing to make fewer loans. The reason according to Jamie Dimon CEO of JPM is that bad mortgage rules are hindering the healthy growth in his industry. He cited too many regulators were involved in crafting the new rules coupled with political intervention.
Is he correct? After the crisis in the recession of 2008 owning mortgages became hugely unprofitable for big banks according to Mr Dimon. So who is in the mortgage business as there seems to be no hindrance for individuals to obtain a mortgage at competitive rates? Non-banks have filled the gap.
What matters is competition and availability. Both appear to be healthy despite JPM complaints. The real test will be in the next crisis, whenever that might happen.