Obama Cites Chase for Poor Job in Mortgage-Mod Program HAMP

JPMorgan Chase was singled out by administrators of the Obama Administration’s mortgage modification program for needing “substantial improvement” in helping homeowners avoid foreclosure.
The U.S. Department of Housing and Urban Development (HUD) and the U.S. Treasury released the November edition of the Administration’s “Housing Scorecard” – a status report on the nation’s housing market, primarily the ongoing effort to reduce mortgage payments for borrowers facing foreclosure.
An assessment of the 10 largest mortgage servicers participating in the Making Home Affordable Program (HAMP) showed that Chase – the top U.S. bank by assets – had a number of issues from previous quarters that have not yet been addressed and play a critical part in its “broader execution of the program.”
“For these reasons, Treasury will withhold servicer incentives from JPMorgan Chase for the third consecutive quarter and will permanently reduce incentives owed to JPMorgan Chase unless the outstanding items are addressed before the next assessment,” HAMP administrators said in a statement.
In a statement, Chase said, “We are disappointed with our rating, and will continue to work hard to improve our processes and controls.”
The latest servicer assessments summarize performance on three categories: identifying and contacting homeowners; homeowner evaluation and assistance; and program reporting, management and governance. Chase was the only lender that needed “substantial” improvement” in assisting HAMP-eligible borrowers.
“The mortgage servicing industry lacked accountability and transparency when this crisis started,” said Treasury Assistant Secretary for Financial Stability Tim Massad. “Publishing these servicer assessments is key to our efforts to hold servicers publicly accountable for their performance and keep necessary pressure on them to improve.  We’ve seen movement in the right direction, and we will keep this up so that the industry continues to change its ways.”
The nation’s second largest bank, Bank of America, was found to be in need of moderate improvement for the third quarter of 2011, but will continue to have its servicer incentives for previous quarters withheld.
“Although Bank of America has not yet remediated all of the areas previously identified as requiring substantial improvement from the previous quarter, it has made progress in addressing a number of items,” administrators said.
Consumer advocates, homeowners trying to get mortgage payments reduced and lawmakers have been very critical of HAMP’s track record. The programs official Congressional overseer reported recently that an estimated 600,000 homeowners who are eligible for HAMP would not get a permanent modification before HAMP expires at the end of 2012.
HAMP has placed more than 880,000 homeowners into permanent modifications to date, but its goal was to assist 3 million to 4 million homeowners.
The third quarter servicer assessments can be found on the Treasury’s website.

One thought on “Obama Cites Chase for Poor Job in Mortgage-Mod Program HAMP

  • December 9, 2011 at 9:27 am

    Jaimie Dimon says in a speech at Goldman that he does not understand it that people do not like successful people, or something to that effect.
    What Dimon does not understand is that yes, people do NOT like successful CRIMINALS like he is. Chase is still screwing over homeowners and Dimon will not fix it. Pony up jerk off and do what is right OTHERWISE I will continue to hope that Obama and Holder grow some balls and put you in jail.

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