Chase has extended its mortgage modification efforts to the investor-owned loans that it services, which represent about $1.1 trillion of loans. This effort includes investor-owned mortgages held in securitizations.
Based on the company's review of investor agreements and its experience with investors and trustees to date, Chase believes it can legally modify the vast majority of mortgages owned by investors consistent with the relevant investor agreements and the best interests of investors, and intends to make modifications where appropriate. Chase will continue to seek investor approval in the small number of situations where investor agreements contain specific terms that may limit modification actions Chase can take.
‘Building on our modification efforts for Chase-owned loans, we have reviewed closely the terms of our investor agreements and have worked with investors, trustees, government officials and other interested parties to fashion an approach to foreclosure prevention efforts that will work for investors and homeowners,’ said Charles W. Scharf, CEO for Retail Financial Services at Chase.
In addition to announcing the expansion of its modification program, Chase provided an update on its foreclosure prevention efforts announced in October 2008. Since October, Chase says it has delayed starting foreclosure on over $22 billion of Chase-owned mortgages of more than 80,000 homeowners so that Chase could review those mortgages for possible modification under the enhanced program.
The company has also added 300 loan counselors, developed a financial modeling tool to analyze and compare the net present value of a home in foreclosure to the net present value of a proposed loan modification and initiated an independent review process to ensure each borrower was contacted properly and offered modification prior to foreclosure, if appropriate.