J.P. Morgan Chase Chase Paid 3 Cents on the Dollar for Foreclosed Loans

(With excerpts from Fortune and CNN) — To date denying all but about between 1.5% to 3% of homeowners applications for permanent loan modifications, especially pre-qualified borrowers who meet the basic criteria for Obama’s Making Home Affordable Plan, has always seemed suspicious and odd. But in light of a new report on CNN news today, it takes on a new air of heinous greed. For instance, the WaMu sub-prime borrowers (and there were many) whose loans wound up in the hands of J.P. Morgan Chase may be interested in this piece of information. The next time you are told that the dcision to approve or deny your permanent loan modification is in the hands of the “investor”, bear this in mind: The investor, in most of these cases, is J.P. Morgan Chase, and J.P. Morgan Chase paid only $0.03 on each dollar of your loan when they purchased it from WaMu. So if J.P. Morgan Chase lowers your interest, even dramatically, they still have a very profitable, tasty fattened pig just waiting to be roasted when ever they have a craving. And, no matter how they prepare the pig, it will still be a fat and tasty one. Purchasing loans at 3-cents on the dollar puts every option in the bank’s court. If they sell your home for 15-cents on the dollar they can still make a profit.

Fortune printed this explanation of how J.P. Morgan Chase profited while so many others lost:

If there was one bank that managed to emerge from the financial crisis unscathed, it was J.P. Morgan Chase. Led by CEO Jamie Dimon, the massive financial services company never posted a quarterly loss during the downturn.

J.P. Morgan (JPM, Fortune 500) shares have returned 82% in the past year, beating the S&P 500 (SPX) by 29 points, as its own trading floor boosts profits and investors anticipate consumer credit losses declining. In its most recent quarter, J.P. Morgan’s profit more than quadrupled to $3.3 billion.

J.P. Morgan got a great deal on WaMu, which it bought out of receivership for 3 cents on the dollar. Every time WaMu does a foreclosure, J.P. Morgan makes money. WaMu’s a beautiful thing.

So, J.P. Morgan Chase, how about spreading a little bit of the good will you were so fortunate to have received and do something that will not only not hurt you one drop, but it will put you into the category of “humanitarian”: Spare hard working, sincere, desperate families from the hardship of losing their lifetime investment, their roof and the credit they need to safely house and care for their children. Give them a lowered interest rate, a permanent loan modification, and continue to collect checks from them for many years to come. It’s a win/win situation and it will bring you good karma!

In its most recent quarter, J.P. Morgan’s profit more than quadrupled to $3.3 billion. J.P. Morgan got a great deal on WaMu, which it bought out of receivership for 3 cents on the dollar. Every time WaMu does a foreclosure, J.P. Morgan makes money. With this in mind there is plenty of room in their business plan to have a conscience that can make a good profit, safely, without creating fabricated excuses to deny permanent modifications and to through families and children out on the streets.

One Response to “J.P. Morgan Chase Chase Paid 3 Cents on the Dollar for Foreclosed Loans”

  1. Я готов вам помочь, задавайте вопросы. Вместе мы сможем найти решение….

    Every time WaMu does a foreclosure, J.P. Morgan makes money…..