Chase says it will join the second-lien program of the federal government's Home Affordable Modification Program (HAMP).
The Second-Lien Modification Program (2MP) is designed to work in tandem with HAMP to lower homeowners' payments on both their first and second mortgages.
Under 2MP, homeowners may see the interest rate on their second lien reduced as low as 1% for five years. The program also provides a financial incentive to borrowers, servicers and investors if the modification is successful.
To qualify, homeowners must successfully complete a trial modification on their first mortgage. When it implements 2MP, Chase will seek to modify second liens whether the first loan is serviced by Chase or by another loan servicer.
‘We have invested significant resources to modify mortgages and keep more families in their homes,’ says David Lowman, head of home lending at Chase, part of JPMorgan Chase & Co. ‘This program makes it easier to coordinate with other servicers by using consistent 2MP standards.’
In 2009, Chase offered 600,000 loan modifications and opened dozens of its Homeownership Centers, where borrowers can receive in-person counseling