The Department of the Treasury has found JPMorgan Chase's servicing performance in the Making Home Affordable Program to be ‘in need of substantial improvement’ and is withholding servicer incentives of up to $1,000 per loan modification until the financial institution upgrades its servicing performance.
In a press statement issued by the Treasury, JPMorgan Chase was singled out as the program's worst performing participant in the third quarter, falling below the department's servicer assessment ratings for efforts in identifying and contacting homeowners, providing homeowner evaluation and assistance, as well as performing appropriate program reporting, management and governance.Â
‘While JPMorgan Chase demonstrated some progress in areas reported for the third quarter, the servicer has a number of outstanding items from previous quarters that have not yet been addressed and play a critical part in their broader execution of the program,’ according to the Treasury statement. ‘For these reasons, Treasury will withhold servicer incentives from JPMorgan Chase for the third consecutive quarter and will permanently reduce incentives owed to JPMorgan Chase unless the outstanding items are addressed before the next assessment.’
The Treasury also announced it will continue to withhold its incentives for Bank of America, noting that although it ‘has made progress in addressing a number of items’ in regard to the program, it is still ‘in need of moderate improvement.’