JPMorgan Chase plots $750B housing push to fund 1M affordable units

JPMorgan Chase plans to deploy more than $750 billion for housing through 2035, including financing for 1 million affordable units and help for 500,000 buyers to purchase homes.

The commitment, part of the bank’s American Dream Initiative, represents a nearly 40% increase in housing-related capital compared to the prior decade, the bank said Monday. It comes not long after JPMorgan Chase named Doug Petno and Troy Rohrbaugh as co-presidents — the clearest step yet in the board’s planning for an eventual successor to CEO Jamie Dimon.

“An affordable and resilient housing market is essential to driving economic growth and increasing opportunity,” Michelle Herrick, head of commercial real estate for JPMorgan, said in the announcement.

Sean Grzebin, CEO of Chase Home Lending, said homeownership remains central to wealth-building and community stability for U.S. households.

The initiative signals Chase will be more active in the purchase mortgage market. The bank plans to support 200,000 first-time buyers, hire 850 new home lending advisers and roll out new digital tools to support originations.

In terms of product development, the bank is considering new collateral types, such as modular and manufactured homes, as well as down payment assistance and other mechanisms to lower long-term borrowing costs.

In the secondary market, JPMorgan Chase plans to work to harmonize standards among key housing finance institutions and federal programs to streamline opportunities and expand the role of private capital.

The bank originated $17.2 billion in mortgages from April through June, up 26% quarter over quarter, in a period when banks are expected to take more market share from nonbanks. The bulk of Chase’s volume came from its retail channel ($10.6 billion, up 22%), followed by its correspondent business ($6.6 billion, up 32%).

Affordable housing initiative

Overall, the bank committed to finance 1 million affordable housing units — defined as households that earn less than 120% of area median income — over the next decade through debt, equity and grants in partnership with developers, owners, nonprofits and governments.

The initiative also has a large policy and research component, using the JPMorgan Chase PolicyCenter and Institute to identify and support state and local reforms that can unlock more supply and lower costs.

The announcement arrives soon after the 21st Century ROAD to Housing Act became law. The bank also plans to invest in local zoning and permitting reforms that allow more housing in residential areas, unlock underused land, modernize building codes and streamline approvals.

JPMorgan Chase will serve as chair of the U.S. Chamber of Commerce’s newly formed Housing Advisory Council, which is designed as a business-led forum to shape housing policy recommendations across levels of government.

As an example of how these strategies may play out on the ground, the firm highlighted several projects in San Francisco’s Dogpatch neighborhood and the broader Bay Area. That includes debt financing that helped deliver the Sophie Maxwell building, with 105 permanently affordable apartments for middle-income residents at the Power Station redevelopment, and nearly $200 million in financing for a 342-unit residential building at the same site.

This article was written by Flávia Furlan Nunes and generated with the assistance of HousingWire Automation, then reviewed by a HousingWire editor before publication.