JPMorgan Uses Unique Strategy To Reach Troubled Borrowers
JPMorgan Chase & Co. (JPM), trying to show its gentle side to troubled homeowners, is offering them rare face-to-face counseling from trained advisors in 24 “homeownership” centers around the country.
The initiative is partly to counter the allegation that lenders give short shrift to such borrowers. At a recent congressional hearing, banks were criticized for funneling struggling homeowners to call centers, where service was poor and waits were long.
JPMorgan also hopes the strategy will help get around one of the biggest obstacles to loan modifications: distressed borrowers’ reluctance to contact their lender in the first place.
“It’s a visible and understandable sign to consumers that we want to talk to you about your mortgage if you are struggling,” Thomas Kelly, a JPMorgan spokesman, said.
JPMorgan is alone among major mortgage servicers to open such walk-in centers, though many have boosted staff to assist borrowers over the phone. Its 24 centers have been opened in areas hard-hit by the housing bust, including nine in California and five in Florida. Others are in the New York City area as well as Phoenix, Denver, Atlanta, Chicago, Detroit Las Vegas, Philadelphia and Washington, D.C.
