Chase Fulfills Refinance Commitment under National Mortgage Settlement
Satisfies relief requirements under California and Florida agreements
New York, NY – – Chase announced today that it fulfilled its refinance commitment under the national mortgage settlement, providing significant interest rate relief to underwater homeowners. The company also satisfied its requirements under two separate but related agreements with the states of California and Florida. In these agreements, which were signed simultaneous to the national mortgage settlement agreement, Chase agreed to provide $1.95 billion of consumer relief activities in California and $1 billion of consumer relief in Florida.
"In just over six months, Chase has helped 75,000 mortgage customers and offered relief to more than 40,000 individuals and families so they can stay in their homes and avoid foreclosure,” said Frank Bisignano, JPMC Co-Chief Operating Officer and Chief Executive Officer of Chase Mortgage Banking. “Our progress toward fulfilling our overall commitment under the settlement supports our ongoing efforts to offer sustainable solutions to homeowners.”
Chase has made significant progress in helping homeowners take advantage of low interest rates, refinancing loans totaling $3 billion to underwater borrowers who are current on their mortgage. As of September 30, Chase has helped over 12,000 homeowners refinance their mortgage, reducing their interest rates by an average of 2% and saving them approximately $250 each month.
Chase has also offered significant relief to homeowners who are behind on their mortgage payments through principal reduction. Chase has approved or completed $3 billion in first lien modifications for nearly 30,000 homeowners through September 30.
Details of the company’s home-retention solutions, foreclosure alternatives, and other loss mitigation efforts from March 1 to September 30 include:
-Offering $7 billion in relief to struggling homeowners
-Reducing customers’ principal balance by an average of $97,000 for 1st lien modifications
-Forgiving an average of $118,000 to facilitate a short sale for those who don’t qualify for a modification or no longer want to stay in their homes
-Making it easier for customers to do business with us by implementing all 320 servicing standards as outlined in the national mortgage settlement
Chase’s share of the $25 billion total settlement is approximately $5.3 billion, of which Chase paid about $1.1 billion in cash. The remainder is fulfilled by the assistance offered to borrowers, including first and second lien principal reduction modifications for borrowers in default, and over $500 million in refinancing to underwater borrowers who are current on their loans. The programs established under the settlement are supplementing our existing loan modification and other foreclosure alternative programs, and providing additional opportunities to give relief to borrowers struggling to make their mortgage payments.
Chase is the U.S. consumer and commercial banking business of JPMorgan Chase & Co. (NYSE: JPM), a leading global financial services firm with assets of $2.3 trillion and operations in more than 60 countries. Chase serves more than 50 million consumers and 4 million small businesses through more than 5,500 bank branches, 17,500 ATMs, credit cards, mortgage offices, and online and mobile banking as well as through relationships with auto dealerships. More information about Chase is available at www.chase.com.
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