Chase said it has fulfilled its refinance commitment under the national mortgage settlement, providing over $500 million in refinancing to underwater borrowers who are current on their loans.
As of September 30, Chase said it has helped more than 12,000 homeowners refinance their mortgage, reducing their interest rates by an average of 2 percent and saving them about $250 each month.
Chase’s share of the $25 billion total settlement is approximately $5.3 billion, of which the top U.S. bank by assets has paid about $1.1 billion in cash.
The remainder of its settlement commitment is fulfilled by first- and second-lien principal reductions for borrowers in default.
Chase said it 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.
Details of the bank’s other homeowner-assistance and foreclosure alternatives 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.