JPMorgan Chase, who received $25 billion through the U.S. Treasury Department, announced that it will not initiate foreclosure on any more homes for the next 90 days while it executes a plan to help borrowers save their homes and stop foreclosure . Chase plans to offer refinanced mortgages to homeowners in toxic loans and facing foreclosure.
They will hire 300 loan counselors and 150 workers to review mortgages and make sure they are offered loan modifications before being placed into foreclosure. Chase’s new plan could help over 400,000 homeowners with $70 billion in loans. Chase will offer homeowners with payment option ARMs such as 30 year fixed-rate loans with affordable payments, principal deferral and interest-only payments for 10 years.
Chase will also offer 500 discounted or donated homes to community groups, nonprofits and government programs.