On February 15, 2011, JPMorgan Chase* announced new and enhanced programs designed to assist its military and veteran customers in the wake of recent stories of unlawful foreclosures and failure to adhere to guidelines under the Servicemembers Civil Relief Act (SCRA).
The new programs include:
Reduced interest rates on loans for active duty service members. The SCRA requires a maximum rate charged to active duty service members be capped at six percent (6%). However, effective April 1, 2011, JPMorgan Chase will lower the mortgage interest rate to 4% for personnel on active duty and for one additional year thereafter, subject to all required approvals.
Enhanced mortgage modification program. Also effective April 1, 2011, an enhanced mortgage modification program will assist military members who have been on active duty since September 11, 2001, and who are delinquent or have been having difficulties making their mortgage payments. In addition, if there are two mortgages on the property, both of which are owned by Chase, the second mortgage interest rate will be modified to one percent (1%).
New Homeownership Centers to open. While the SCRA protects military members from being foreclosed upon only if they entered into a mortgage prior to going on active duty, Chase is ensuring additional protection by not foreclosing on any active duty military personnel who are deployed. In addition, in cases where Chase foreclosed on military personnel covered by SCRA, Chase will be rescinding the foreclosure sale as well as forgiving the remaining mortgage debt of the military member. Further, Chase will do the same for any future military member who is wrongfully foreclosed upon.
Chase and its non-profit partners plan to donate 1,000 homes over the course of the next five years to military personnel and veterans.
Finally, by the end of 2011, Chase plans to open five Chase Homeownership Centers staffed with employees trained in SCRA, military issues and special programs offered by Chase near Ft. Hood, TX; Naval Station Norfolk, VA; Ft. Bragg/Pope Air Force Base, NC; Camp Lejeune, NC and Ft. Campbell, KY. In addition, Chase will also hold 10 outreach programs to military personnel near large military bases throughout 2011.