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The MReport Webcast: Friday 10/3/2014

JPMorgan Chase reported it has completed nearly a quarter of its consumer relief obligations required under a landmark mortgage-backed securities settlement last year. According to a report issued Wednesday by the settlement's monitor, Joseph Smith Jr., the megabank expects to be credited for more than $862 million it provided through various borrower relief measures in the second quarter. Under the terms of last year's $13 billion settlement, Chase is required to provide $4 billion in credited relief through loan modifications, rate reductions, low- to moderate-income lending, and other programs by the end of 2017.

Adding in a sampling of loans Chase submitted earlier this year to review its credited relief calculations, the bank claims it has doled out more than $868 million in relief through various means. That number is currently awaiting validation by Smith’s team. Going by gross calculations, the bank's internal review group says it has aided more than 46,000 borrowers in initiatives totaling a principal amount of $7.5 billion dollars. Just in the second quarter, that figure includes loan modifications granted to nearly 7,000 borrowers and 39,500 loans granted to low- and moderate-income consumers.

The Mortgage Bankers Association reported Thursday that its monthly gauge of credit availability was flat from August to September, staying at 116.1 in its latest measure. The reading reflects a slight decline in availability for government-insured loans, which was offset by a minor increase in access to conventional mortgages. The MBA's monthly measures show credit access expanded in six of the first nine months of 2014, even as more stringent rules governing lending have taken hold. While experts argue there's been little evidence of regulatory changes making a significant impact on mortgage volumes, 85 percent of senior lending executives still say the current environment is too restrictive for most consumers to secure a home loan.

About Author: Jordan Funderburk

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