Chase has deemphasized residential mortgages, and
its market share of originations is anemic for the nation's biggest bank, amounting to just 5% in the past quarter, according to data compiled by Bloomberg. That compares with a peak of 25% in 2006.
Source:
https://www.americanbanker.com/artic...f-quiet-losses
I think there are still good reason to resolve this problem, but I don't foresee that it would materially impact the ability to obtain a residential mortgage.
Perhaps, though all three of my last mortgages were eventually purchased by Chase. Though they only originated the first one. Still, it's a pain to lose that one bank.
Much more consequential is if they report this as a default. That could easily screw him for 7 years. My wife's credit rating was high 700's before HSBC screwed her and afterwards it was in the 600's for seven years as I mentioned. Luckily my credit was great so it wasn't that bad but it was still such a headache.