JP Morgan's Loan Mod Program Prevents 250,000 Foreclosures
JP Morgan Chase & Co. (JPM) announced Thursday it has prevented 250,000 foreclosures since beginning its active loan modification process in early 2007, according to a MarketWatch report. The figure is part of a presentation scheduled to be given at an upcoming conference, in which JP Morgan is set to reiterate its prime mortgage losses could total $300 million in early 2009. JP Morgan Chase began in 2007 to actively pursue modification options with customers who held adjustable-rate mortgages that were scheduled to reset. Despite the efforts, delinquencies continued to rise, according to MarketWatch. JP Morgan in late October became the latest large lender to launch an aggressive loan modification plan, saying it would look to implement a “mass mod” program while voluntarily enacting a foreclosure moratorium on loans it owns in an effort to qualify existing troubled borrowers for the new, expanded program. The expansion of its existing modification efforts came after JP Morgan acquired failed thrift Washington Mutual Inc. - and all of its struggling borrowers. “It doesn’t make sense for us to wait” to tackle the problem, said Charles Scharf, an executive at the firm, according to the Wall Street Journal on Nov. 1. JP Morgan told HousingWire earlier this week that, in addition to its expanded modification plan, the bank is eager to offer Hope for Homeowners refinancing to its current customers, although it expects a slow start on that end. Write to Diana Golobay at firstname.lastname@example.org. Disclosure: The authors held no relevant investment positions when this story was published. Indirect holdings may exist via mutual fund investments. HW reporters and writers follow a strict disclosure policy, the first in the mortgage trade.