JPMorgan Chase said its correspondent division, which has been buying subprime mortgages only in bulk, will begin buying them on a loan-by-loan basis this year.

Such "flow" programs are increasingly important to originators concerned about constrained liquidity in the market. Like some other large mortgage lenders - including the biggest, Countrywide Financial Corp. - JPMorgan has framed the subprime crash as an opportunity to strengthen its position in the business.

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