Chase, the U.S. consumer and commercial banking brand of JPMorgan Chase & Co, announced Monday that it will provide additional help to struggling homeowners by joining the second-lien program under the Home Affordable Modification Program (HAMP).
Known as 2MP, the second-lien modification program is designed to work in tandem with HAMPto lower homeowners’ payments on both their first and second mortgages. To qualify for the program, homeowners must successfully complete a trial modification on their first mortgage.
Qualified homeowners may see the interest rate on their second lien reduced to as low as 1 percent for five years. In addition, 2MP provides a financial incentive to borrowers, servicers, and investors if the modification is successful. When it implements the program, 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,” said David Lowman, head of home lending at Chase. “This program makes it easier to coordinate with other servicers by using consistent 2MP standards.”
Last year, Chase offered 600,000 loan modifications to homeowners. The bank has also opened dozens of Chase Homeownership Centers to provide face-to-face loan counseling to struggling homeowners and plans to have a total of 51 centers by this spring.
Chase is the third major mortgage servicer to sign on to the 2MP program. As DSNews.com reported, Bank of America announced in January that it was the first to sign an agreement formally committing to participate in the program. And last week, Wells Fargo agreed to participate.