JPMorgan Cutting Some Mortgage Loans

JPMorgan Chase(JPM Quote) plans to stop offering certain Alt-A mortgages.

The New York banking company said in an internal memo on Wednesday that all mortgage loan locks and underwriting under the ChaseFlex "No Doc" or "No Ratio" programs must be completed by Sept. 19.

As home prices soared over the last few years, Alt-A loans became popular among borrowers with less-than-perfect credit histories who have better credit than the so-called subprime borrower. But as home prices have fallen, lenders large and small have been hit hard by rising delinquencies and defaults on these mortgages. ...