Chase Makes Progress to Contain Bank Foreclosure Property

by on Stop Foreclosures

Two months after the federal initiative, Making Home Affordable was launched, JPMorgan Chase and Co. was able to modify about 138,000 troubled mortgage loans. The initiative is designed to contain the number of bank foreclosure property in the country.

The total trial mortgage modifications initiated by JPMorgan Chase include 87,000 loans altered under the Making Home Affordable program and additional 50,900 mortgages through the bank’s own modification program.

Under the program, a distressed homeowner can modify his loan to reduce payments for interest, principal, hazard insurance and property taxes to about 31 percent of his gross income. The modification usually involves extending the loan terms or reducing interest rates to help homeowners protect their homes from becoming bank foreclosure property.

According to Chase, its loan modification plan is the same as the one used for troubled homeowners who failed to qualify for the federal program. JPMorgan Chase retail financial services director Charlie Scharf said that the bank has made significant progress since the federal program was launched last April 6.

He said that the bank was able to help distressed homeowners with its trial loan modifications by increasing its capacity through hiring more people, expanding its office space and technology investment.

He added that JPMorgna Chase understands the desperation of many homeowners to save their homes from becoming bank foreclosure property and they need to hear from the bank as quickly as possible. He said that the bank is committed to do all the necessary things to help distressed borrowers who qualify for the programs.

According to JPMorgan Chase, it has successfully met the demand for serving troubled homeowners by hiring nearly 950 loan counselors in its various operations across the country. The bank now has a total of 3,500 loan counselors and plans to hire more in the coming weeks.

Furthermore, the bank has hired about 2,000 employees for its mortgage operations and opened about 27 Chase Homeownership Centers across the country. It claimed that over 20,000 troubled homeowners visited the centers.

On the other hand, a report released by federal regulators, the Office of Comptroller of the Currency and the Office of Thrift Supervision stated that loan modifications across the country have increased.

The report noted that when distressed homeowners got reduced payments, the number of bank foreclosure property rates dropped.