Citigroup, JP Morgan Chase Join Foreclosure Moratorium
JP Morgan Chase & Co. has answered Rep. Barney Frank's (D-Mass.) call earlier this week to declare a three-week moratorium on home foreclosures, joining Citigroup and Bank of America.
In a letter to Frank, JP Morgan chief executive Jamie Dimon wrote, "We will not add to the foreclosure process any new owner-occupied residential loans that are owned and serviced by JPMorgan Chase. This moratorium replicates the 90-day foreclosure freeze we announced on October 31, 2008. We believe three weeks is adequate time for the Treasury to announce – and for us to implement – a new plan."
Earlier today, Citigroup said it began a moratorium yesterday that would extend until March 12, or until President Obama has finalized the details of the loan modification program, whichever comes first.
"Today’s announcement expands on Citi’s current foreclosure moratorium in which Citi does not initiate or complete a foreclosure sale on any eligible borrower where Citi owns the mortgage, the borrower is seeking to stay in the home, which is his or her primary residence, is working in good faith with Citi and has sufficient income for affordable mortgage payments," Citi said in a release.
The big banks have agreed to the moratorium as they wait on Treasury Secretary Tim Geithner to reveal the details of his economic recovery package, which includes homeowner relief.
February 13, 2009; 11:47 AM ET
Categories: The Ticker | Tags: Bank of America, Citigroup, JP Morgan
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