Feds To Stop Punishing Chase, Bank of America For Sucking At Mortgage Modifications

Since the Treasury Dept. began releasing quarterly report cards on big banks’ efforts to improve their mortgage modification processes, Bank of America and JPMorgan Chase have consistently received subpar marks, leading the feds to withhold a total of $171 million in incentives. That money is now set to be released to BofA and Chase — but not necessarily because they suck any less at mortgage mods.

While the latest report card does say that both Chase and BofA have improved and thus will not be penalized going forward, the release of these previously withheld incentives is actually a result of February’s $25 billion settlement between the nation’s biggest lenders and 49 states.

Of the total amount, BofA will get $81.8 million and Chase will be gifted with $89.1 million. And because of the improved marks on this latest report card, both banks will continue to receive incentives so long as they don’t backslide.

Here is how things stand with the banks’ most recent results:

Bank of America was found to have remedied substantially all specific areas needing improvement that were identified in the prior assessments and continued to demonstrate improved processes generally. JPMorgan Chase demonstrated marked progress in remedying a number of outstanding issues from previous quarters. This includes improving the speed at which they process eligible homeowners for permanent HAMP modifications and strengthening their internal quality assurance processes around the program.

Chase’s situation had been so bad after the last report card that the Treasury recently threatened the bank with a permanent ban on incentives.

Obama Administration Releases February Housing Scorecard [Treasury.gov via Chicago Tribune]

Comments

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  1. blogger X says:

    I’m confused, The Department of Justice sues these corporations for fradulent practices, then the Department of Treasury gives them money?

    o_O

    • lovemypets00 - You'll need to forgive me, my social filter has cracked. says:

      That’s our government at work! They’re here to help us! **rolls eyes**

  2. Tiercelet says:

    If anybody needed further evidence that the settlement is a giant giveaway to banks, a total sellout of the American people…

  3. Hi_Hello says:

    it’s like letting the kids who normally gets F but finally got a D go to the next grade level….

    something is wrong with the system…

  4. SamiJ says:

    Why are they giving the banks the incentives? Under section 37B of the contract signed by them, it states quite clearly that all offers shall become null and void if – and you can read it for yourself in this photostatic copy: The undersigned shall forfeit all rights, privileges, and licenses herein and herein contained, et cetera, et cetera… Fax mentis incendium gloria cultum, et cetera, et cetera… Memo bis punitor delicatum!

    You get nothing! You lose! Good day, sir!

  5. jp7570-1 says:

    So which of these banking bastards is going to prison?

    Answer: no one, any time soon.

  6. TasteyCat says:

    Buy a house you can afford next time.

  7. VashTS says:

    No one can afford a house period. Lets say 95% of us can never buy a house by the current system of the world government. That’s why borrowing was invented. You pay the bank money it never gave money to rightfully own. It’s true. It’s well known that many of the rich and ruling class have built wealth on an entire ponzi scheme.

    The reason the average person cannot do the same is laws have been made the protect the current wealth class, plus usually it take ruthless people to become wealthy. You think anyone of those individuals at Microsoft corporate board ever worries about kids who are affected by their abuse in other countries when it comes to making their products; enjoy those iphones and ipads tonight : (

  8. dush says:

    Shouldn’t being subpar mean incurring fines, not just a withholding of incentives?
    Why are tax dollars being directly handed over just so they will do the right thing?

  9. etbrown4 says:

    Dumb and dumber. New President please!

  10. OnePumpChump says:

    So who is retiring to a sinecure at Chase or BoA?

  11. BlueHighlighterNextToACoozie says:

    Its all such BS! the gvmt obviously has their hand in all of these banks pockets this article just makes it appear as if they are actually giving the bank a handjob in that pocket as well. In my state a state supreme court order was passed 11 months ago which required the banks to certify that the borrower was reviewed for alternatives before a judge would grant foreclosure. For the past 11 months ALL Chase and BOA pending foreclosures have sat idle, homeowners living for free whether they gave up or are trying to work with the lender, whether they complied with the terms of this order or not, 11 MONTHS and Chase and BOA still have not even instructed their attorneys on procedures and such on how to proceed with cases that apply to the order. 11 MONTHS of them losing money, homes depreciated, borrowers past due amount increasing, just for these banks to come up with a procedure! But yeah they have improved lets start tossing the millions their way. The shits sick!!