JPMorgan Chase suffered a residential repurchase loss of $390 million in the fourth quarter, a 17% increase from the year earlier period, and a sign that Fannie Mae, Freddie Mac and other secondary market investors are not easing up on their buyback demands.

In its fourth quarter earnings statement JPM, the nation's second largest home lender, noted that its production expenses are rising for two main reasons: it is relying more on retail production – which is more costly than third-party production – and it's spending more money on what it calls “enhanced underwriting processes.”

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