Chase is Latest Lender to Offer 2nd Lien Foreclosure Rescue

ChaseChase has become the third major lender to announce it will join the new second-lien mortgage reduction effort as part of the Obama Administration’s larger foreclosure rescue program.
Chase follows Bank of America and Wells Fargo.
The Second-Lien Modification Program, 2MP, works in conjunction with the primary mortgage relief campaign, Home Affordable Modification Program, HAMP, to lower homeowners’ monthly payments by hundreds of dollars on first and second mortgages.
Under 2MP, borrowers could see the interest rate on their second lien reduced as low as 1 percent for five years, Chase said. The second-lien program also provides financial incentives to mortgage servicers and investors if the modification is successful.
Homeowners must successfully complete a trial modification on their first mortgage to qualify for second-lien relief.  Chase said it will modify second liens whether the first loan is serviced by Chase or by another loan servicer.
“We have invested significant resources to modify mortgages and keep more families in their homes,” said David Lowman, head of home lending at Chase, part of JPMorgan Chase. “This program makes it easier to coordinate with other servicers by using consistent 2MP standards.”
Chase offered 600,000 loan modifications to homeowners in 2009. The lender also has opened dozens of Chase Homeownership Centers nationwide that provide in-person counseling to homeowners facing possible foreclosure. Chase plans to have a total of 51 centers by the end of spring.

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