NEW YORK, December 8, 2009 - Chase announced today that it has offered more than 568,000 mortgage modifications, for more than $100 billion in loans, to struggling homeowners in 2009, including more than 83,000 that have already become permanent.
These homeowners have been offered modifications through the U.S. Treasury's Home Affordable Mortgage Program, as well as through Chase's own modification programs and those of Fannie Mae, Freddie Mac, VA and FHA. The results are provided in the table below:
"We first attempt to help struggling borrowers using the Home Affordable Mortgage Program. If they are not eligible for it, we use a range of other modification programs," said Charlie Scharf, head of Retail Financial Services at Chase, part of JPMorgan Chase & Co.
"We continue to work very hard to convert customers from a trial modification to a permanent modification that lowers their monthly payment, but it has been a struggle," he said. Under the HAMP rules, borrowers must make at least three trial payments, provide documents, including proof of income and hardship verification, and have their credit re-underwritten to get a permanent modification.
About 51% of borrowers offered HAMP trials from April through September - about 75,000 families - have already made three payments, but have not provided documents acceptable or necessary under the HAMP guidelines.
In addition, 29% of borrowers offered HAMP trial plans did not make all required payments, making them ineligible for a permanent modification under the program. About 20% of borrowers have made all payments and provided all the necessary paperwork, and the majority of them are expected to get permanent modifications soon.
"We want to give customers every opportunity to make their modifications permanent," Scharf said. "We have hired thousands of employees and expanded our outreach, and we have begun to see some improvement in results. We believe our intensified efforts, plus the heightened awareness of these issues, will help further encourage struggling customers to make every effort to complete their modification."
Chase continues its extensive efforts to help these homeowners successfully convert into permanent modifications, including:
Chase services about 10.3 million loans, including about 8 million loans for investors.
Chase is the U.S. consumer and commercial banking business of JPMorgan Chase & Co. (NYSE: JPM), which operates more than 5,100 branches and 15,000 ATMs nationally under the Chase brand. Chase has 146 million credit cards issued and serves consumers and small businesses through bank branches, ATMs and mortgage offices as well as through relationships with auto dealerships and schools and universities. More information about Chase is available at www.chase.com.