Other LanguagesJPMorgan Chase, WaMu’s new owner, today announced a new loan modification program for borrowers with JPMorgan Chase, WaMu and EMC loans. The company based its new mortgage relief program on the model established for Countrywide customers as part of a multistate settlement between Bank of America, our office and other state attorneys general, and aims to improve on it.
Within the next 90 days, Chase plans to open regional counseling centers, hire additional loan counselors, introduce new financing alternatives and establish a new review process to head off unnecessary foreclosures. The company will eliminate pay-option ARMs, a controversial type of adjustable-rate mortgage that allowed borrowers to defer part of their monthly payments. This fact sheet shows what a loan modification might look like for those with a pay-option ARM, subprime hybrid ARM or subprime fixed-rate loan. While implementing these changes, Chase will not put any additional homes into foreclosure.
The company will proactively reach out to customers in the coming weeks but borrowers struggling to make mortgage payments should call the customer service number that appears on their most recent loan statement. If unable to find that number, WaMu borrowers may call 1-866-926-8937 and Chase borrowers may call 1-800-848-9136. Be patient, since customer service staff may not be fully trained on the program yet.
Chase inherited pay-option ARMs when it acquired WaMu’s mortgage portfolio last month and EMC’s portfolio earlier this year as part of the Bear Stearns acquisition. The new program is expected to help 400,000 families with $70 billion in loans over the next two years. The company said an additional 250,000 families with $40 billion in mortgages have already been helped under existing loan-modification programs.
The Washington Attorney General's Office provides information about free mortgage counseling and other resources on our Web site.