Chase Extends Modification Efforts
Chase has extended its mortgage modification efforts to the $1.1 trillion in investor-owned loans that it services. This extension, which significantly expanding the reach of its previously announced mortgage modification efforts, includes investor-owned mortgages held in securitizations.
Based on the company's review of investor agreements and its experience with investors and trustees to date, Chase intends to legally modify the vast majority of mortgages owned by investors consistent with the relevant investor agreements and the best interests of investors.
"Building on our modification efforts for Chase-owned loans, we have reviewed closely the terms of our investor agreements and have worked with investors, trustees, government officials and other interested parties to fashion an approach to foreclosure prevention efforts that will work for investors and homeowners," said Charles W. Scharf, CEO for retail financial services at Chase. "When homes are foreclosed, everybody suffers, so working aggressively to modify all loans, whether owned by Chase or owned by others, on terms that should work for the borrower, makes good sense for everyone," he added. "Our experience at Chase has shown that when mortgages are properly modified, using income verification and other appropriate criteria, they perform very well over time."
Chase announced enhanced foreclosure prevention efforts on Oct. 31, 2008, and the company now has in place the people, programs and tools to help more borrowers stay in their homes.
Since its October announcement covering Chase-owned loans, Chase has delayed starting foreclosure on over $22 billion of Chase-owned mortgages for more than 80,000 homeowners so that Chase could review those mortgages for possible modification under the enhanced program, implemented the package of modification offers for delinquent borrowers and finalized for mailing in early February proactive modification offers to borrowers of Chase-owned loans at imminent risk of default.
In addition, the company has selected sites for 24 Chase Homeownership Centers in areas with high mortgage delinquencies where counselors can work face-to-face with struggling homeowners, added 300 new loan counselors in the last 11 weeks to provide better help to troubled borrowers, bringing the total number of counselors to more than 2,500 and initiated an independent review process to ensure each borrower was contacted properly and offered modification prior to foreclosure, if appropriate.
Chase has been working with Fannie Mae to implement Fannie Mae's new Streamlined Modification Program to assist borrowers facing imminent risk of default. Through the initiative, Chase believes it will be able to meaningfully increase the number of homeowners it can help.