As part of a plan to help borrowers better understand their mortgage options, JPMorgan Chase has unveiled simplified disclosures, tightened credit standards, and a requirement of an initial fixed rate of at least five years on adjustable-rate mortgages for nonprime borrowers.The company said it will also use underwriting guidelines that require borrowers to demonstrate their ability to handle increases in interest rates on nontraditional mortgages. "Our simplified mortgage disclosure and product choices will help meet the goals of borrowers as well as investors, community leaders, and regulators in today's challenging housing market and beyond," said David Lowman, chief executive officer of Chase Home Lending, the mortgage unit of JPMorgan Chase. The company said its simplified disclosures enable consumers to compare product features for traditional and nontraditional mortgages and provide more information on how an adjustable-rate feature can affect the monthly payment. Chase Home Lending can be found online at http://www.chase.com.
