Frank Releases JP Morgan Chase Letter Announcing Three-Week Foreclosure Moratorium
House Financial Services Chairman Barney Frank (D-MA) today received a letter from JP Morgan Chase CEO Jamie Dimon announcing a three-week foreclosure moratorium. Earlier this week, Frank called on all holders and servicers of mortgages to initiate such a moratorium until President Obama announces the administration’s plan to reduce foreclosures. Mr. Dimon’s letter follows:
February 12, 2009
The Honorable Barney Frank
Dear Chairman Frank:
As I noted during yesterday’s hearing in the House Financial Services Committee, JP Morgan Chase has worked hard to be at the forefront of foreclosure prevention and modification efforts to keep families in their homes.
Yesterday, you proposed a temporary foreclosure moratorium, and Congressman David Scott subsequently asked lenders to commit to a three-week moratorium until Treasury implements a new modification plan.
Today we have initiated a foreclosure moratorium through March 6, 2009:
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.
We stand ready to work with you to put the appropriate processes in place, including a national modification standard, to reduce the incidence of foreclosure and to encourage long-term, sustainable home mortgages.
cc: The Honorable Spencer Bachus