J.P. Morgan, the 800-pound gorilla in the private label space

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The private-label residential mortgage-backed securities market has been resurrected from its near-death following the global financial crisis a decade and a half ago. This year it is on track to securitize loan volume approaching or even exceeding $100 billion, and driving a healthy share of that secondary market business is J.P. Morgan, the investment bank side of New York-based banking holding company J.P. Morgan Chase & Co.

J.P Morgan, through its private label conduit, J.P. Morgan Mortgage Trust, or JPMMT, year to date through the end of September has delivered a total of 16 private label deals to the market backed by loan pools with an aggregate unpaid principal balance of nearly $13 billion, according to prime and nonprime private-label deals tracked by Kroll Bond Rating Agency. The tally for that segment of the entire private-label market, as of the same point in the year, Kroll’s data shows, exceeds 150 private label deals backed by some $67 billion in mortgage volume, which means J.P. Morgan accounted for 19% of the total private label volume over the period.