JPMorgan Chase said today that it’s taking some steps to help ensure that subprime borrowers better understand the mortgage loans they’re actually getting. The press release describes the new standards, which include the use of a new disclosure statement as well eliminating all adjustable-rate mortgage products with a reset of under 5 years. Other changes include qualifying borrowers at the fully-indexed rate for all ARM mortgage products, eliminating stated-income products and reducing HLTV loan programs for subprime borrowers. The changes stopped short, however, of requiring subprime borrowers to escrow for property taxes and insurance — something regulators and industry advocates have been pushing for as of late. JPMorgan Chase also highlighted a focus on loan mods for troubled borrowers, saying it is “considering all options available to modify loans” and that it is “continuing to streamline its modification process to make it more efficient for borrowers to obtain workable and affordable solutions.” Speaking of which, remember when loan mods at Bear Stearns had hedge fund investors up in arms? Doesn’t that seem like ages ago at this point?
JPMorgan Chase To Simplify Subprime Mortgage Disclosure and Product Choices
Most Popular Articles
Latest Articles
Labor market report is good news for mortgage rates
Friday’s jobs report came in as a miss of estimates and wage growth came in lower than expected, which is good news for mortgage rates.
-
Virginia Realtors: Zillow’s touring agreement may not be legal
-
Low inventory creates challenging conditions in North Carolina’s housing market
-
Tri-state area housing shortage could cost the region economically
-
Remote reverse mortgage counseling now permanently permitted in Massachusetts
-
NAR settlement terms slated to go into effect in mid-August