J.P. Morgan Chase & Co. is launching programs in April to help military families and vets stay in their homes. The announcement comes shortly after J.P. Morgan admitted to wrongly foreclosing on 18 active-duty military members and overcharging 4,500 on mortgages.
The military programs will include reduced mortgage rates for those covered under the Servicemembers Civil Relief Act, as well as enhanced mortgage modifications for active-duty military personnel since Sept. 11, 2011.
Chase also said it would not foreclose on any active military personnels' homes. If a wrongful foreclosure does occur, the bank would forgive all of that military member's remaining mortgage debt, the company said. Also, within the next five years, the bank says it plans to donate 1,000 homes to military personnel and vets.
This company has a great history of honoring military and veterans, and the mistakes we made on military foreclosures are a painful aberration on that track record, says Chairman and Chief Executive Jamie Dimon.
Meanwhile, following Chase's admission of wrongfully overcharging and foreclosing on military personnel, lawmakers are considering new legislation to help prevent military personnel from losing their homes and being faced with high interest rates.
Source: J.P. Morgan Unveils Mortgage Programs for Military Customers, Dow Jones News Service (Feb. 15, 2011)