The second-lien modification program, known as 2MP, is designed to work in tandem with HAMP to lower homeowners’ payments on both their first and second mortgages.
Under 2MP, homeowners may see the interest rate on their second lien reduced as low as 1% for five years. The program also provides a financial incentive to borrowers, servicers and investors if the modification is successful.
To qualify, homeowners must successfully complete a trial modification on their first mortgage. When it implements 2MP, Chase will seek to modify second liens whether the first loan is serviced by Chase or by another loan servicer.
In 2009, Chase offered 600,000 loan modifications to homeowners. It also has opened dozens of Chase Homeownership Centers to provide face-to-face loan counseling to struggling homeowners and will have a total of 51 centers by this spring.
David Lowman, head of home lending at Chase, said: “We have invested significant resources to modify mortgages and keep more families in their homes. This program makes it easier to coordinate with other servicers by using consistent 2MP standards.”
