Lenders Discuss 2nd Lien Modification Issues and Defend Foreclosure Prevention Efforts

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Several of the bankers testifying before the House Financial Services Committee on Tuesday drew a close connection between principal reduction and the impediment to loan modifications posed by the existence of second mortgages.
As was covered in our earlier report, David Lowman, CEO for Home Lending at J.P. Morgan Chase was the most outspoken of the four witnesses on the topic of principal reduction, drawing what several newspapers called "a line in the sand" about what his bank is willing to do in that area. He took a similar tack on second mortgages.
First, he stressed that Chase borrowers were no more likely to be delinquent on second mortgages than on the primary loan.  He said that Chase data shows that 97 percent of borrowers in Chase's $98 billion second lien portfolio are performing on their loans, a percentage that drops only two points when the borrowers have a loan to value (LTV) exceeding 100 percent.

See the rest of the article at

http://www.mortgagenewsdaily.com/04142010_loan_modifications.asp

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