The Real Deal Miami

Permanent Treasury loan mods prove elusive for Chase customers

December 08, 2009 01:00PM

The Treasury’s Home Affordable Mortgage Program is lagging

behind others of its kind when it comes to turning trial loan modifications
into permanent ones, according to data released today by Chase, the U.S.
consumer and commercial banking arm of JPMorgan Chase. The bank
said HAMP is typically first in line for struggling homeowners seeking
Chase’s help, but the stringent requirements of the government’s plan
have made it difficult for most borrowers to obtain permanent
modifications. Of the roughly 199,000 HAMP modifications granted by
Chase this year, only about 4,300, or 2 percent, have become
permanent. That’s far below the 36 percent rate experienced by the
160,826 homeowners who received modifications through Chase’s own
programs, 58,239 of whom now have permanently lower monthly mortgage
payments. “We continue to work very hard to convert customers from a
trial modification to a permanent modification that lowers their
monthly payment, but it has been a struggle,” said Charlie Scharf,
head of Retail Financial Services at Chase. The bank said it is
ramping up its efforts to help homeowners submit the necessary
documentation and payments to make their modifications permanent. TRD