“We worked very hard to help homeowners as quickly as possible,” Kevin Watters, the CEO of mortgage banking at Chase, said.
Between March 2012 and April 15, the bank forgave $2.9 billion in principal on first-lien mortgages, refinanced $3 billion of loans to underwater borrowers current on mortgages, reduced loans by an average of $121,000 in forgiven principal, forgave an average $118,000 to facilitate a short sale to individuals who could not afford modification and implemented 320 servicing standards.
“We have helped nearly 1 million homeowners in the most difficult years since the Great Depression,” Watters said. “We have also invested in improving our processes and systems to help families achieve and sustain the American dream of homeownership.”
Since 2009, Chase has cut principal balances by $6.5 billion in first-lien modifications, helped nearly one million families avoid foreclosure and provided loan modifications to more than 600,000 homeowners. The bank also launched initiatives to lower borrowers’ interest rates, extend terms of the loan agreement and forgive principal.
As a result of its efforts, Chase earned $4.2 billion in credits in 13 months. All credits are subject to validation by the Office of Mortgage Settlement.