That is partly because the bank had a $30 billion run-off portfolio during the quarter.
CEO Jamie Dimon also pointed out during a media conference call that the bank continues to sell a majority of its home loans to Fannie Mae and Freddie Mac because they still do not consider it profitable to carry most home loans on their own book.
One reporter pointed out that if JPMorgan were to hold more mortgages on its own books, it would be a sign that the company was confident about the profitability of mortgage loans.
To which Dimon snapped, "We are not making a profit on mortgages. We are getting killed in mortgages, in case you haven't noticed."
The CEO said that all the housing policies that were out there were contradictory to a healthy mortgage market.
High refinancing fees, banks tightening underwriting standards because they are worries about putback risk, higher capital rules, and a poor residential mortgage-backed securities markets were some of the issues he listed as problems hindering the mortgage market.
Additional News: Fed to Weigh Further Easing Amid Doubts About Recovery
Additional Views: Housing Stocks Are Hot, but the Rally May Not Last
CNBC Data Pages:
TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.