Chase Reports 83K Permanent Mortgage Modifications

ChaseBanking giant Chase today said it has offered more than 568,000 mortgage modifications – more than $100 billion in loans – to struggling homeowners hoping to avoid foreclosure in 2009.
Chase, the nation’s largest credit card issuer, also reported that of those modifications, more than 83,000 have become permanent.
Chase said the homeowners have been offered modifications through the U.S. Treasury’s Home Affordable Mortgage Program (HAMP), and through Chase’s own modification programs, and similar programs from Fannie Mae, Freddie Mac and the Federal Housing Administration.
“We first attempt to help struggling borrowers using the Home Affordable Mortgage Program,” said Charlie Scharf, head of Retail Financial Services at Chase, part of JPMorgan Chase & Co. “If they are not eligible for it, we use a range of other modification programs.” 
Scharf added that it is a challenge under HAMP rules to convert modifications to permanent status.
Under the HAMP rules, he said borrowers must make at least three trial payments, provide documents, including proof of income and hardship verification, and have their credit re-underwritten to get a permanent modification.
Two weeks ago, Obama Administration officials warned mortgage lenders that not enough loans have been modified and not enough re-drawn mortgages have been made permanent under HAMP.
Lenders could face financial penalties and other actions, which would include the public outing of companies that have not met their obligations, officials said.
U.S. Treasury and Department of Housing and Urban Development officials kicked off what it dubbed, the “Mortgage Modification Conversion Drive,” a second phase of HAMP to help hundreds of thousands of homeowners by lowering mortgages payments.
See related articles:
Obama to Lenders: Ease More Mortgages or Face Penalties
Citi Reports It Helped 130,000 Avoid Foreclosure in Third Quarter

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