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 diana.golobay@housingwire.com. 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.

Most Popular Articles

FHA loan limits increasing for almost all of U.S. in 2020

Thanks to increases in home prices in 2019, the Federal Housing Administration loan limit will increase for nearly all of the country in 2020.

Dec 05, 2019 By

Latest Articles

HousingWire is growing. Come join us

2019 has been a year of tremendous audience and product growth for HousingWire and we couldn’t be prouder. But we’re not ready to rest on our laurels. Far from it. In fact, 2020 promises to be an even bigger year for HousingWire.

Dec 06, 2019 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please