Chase Loan Modifications Total 138,000 Over Past Three Months

June 30, 2009 No Comments »

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Chase approved 138,000 loan modifications since April 6, including 87,100 via the Making Home Affordable program and 50,900 via its own loan modification program.

Of those offered, borrowers have made their first modified payments on 53,600 of them.

“We are encouraged that more than 53,000 families have already made the first payment for their trial modifications,” said Charlie Scharf, head of Retail Financial Services at JPMorgan Chase, in a statement.

“But we know it is extremely early in the program, so it is difficult to gauge its ultimate success.”

Oh right, that pesky re-default rate; well, Chase said its target front-end debt-to-income ratio is 31 percent for loan modifications, so hopefully that cuts mortgage payments drastically and keeps more loan mods current.

Another 155,000 loan modification applications are in process, bringing Chase’s so-called foreclosure prevention total to 565,000 since 2007.

Since January 1, the company has hired more than 950 loan counselors, bringing the total to 3,500, with plans to hire more in coming weeks.

Chase also hired an additional 2,000 mortgage operations employees to handle the unprecedented loan volume that resulted from the record low mortgage rates, though activity has since cooled.

The Chase loan modification program, which got underway back in November, originally began with a foreclosure moratorium so the company could assess its loan portfolio.

Chase services about 10.3 million loans, including roughly eight million loans on behalf of investors.

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