JP Morgan Chase Self-Imposes 90-Day Moratorium On Foreclosures; Massive Loan Modification Program To Be Launched

The Wall Street Journal reports:

J.P. Morgan Chase & Co. launched a plan on Friday to modify the terms of $70 billion in mortgages for borrowers who are behind on their payments or soon could be. The move by the New York bank will cover as many as 400,000 borrowers. They’ll be moved into loans carrying lower interest rates, smaller principal amounts or other more-affordable terms.

Under the plan, option Adjustable Rate Mortgages that are accumulating interest will be replaced with fixed-rate loans that are more stable for borrowers and seen as far less likely to default. J.P. Morgan said it wouldn’t begin the foreclosure process on borrowers during the next 90 days, as it opens loan-counseling centers and takes other steps to launch the program.

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