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JPMorgan Chase expects to give a new form to terms on $70 billion in loans to 400,000 families, including customers of Washington Mutual, over the next pair years, and will delay foreclosure on any loans while it rolls out the new program past the nearest 90 days.

The lenders previously modified loans and payments for $40 billion in mortgages to 250,000 families, the New York company said in a release.

JPMorgan bought WaMu after the Seattle-based luck failed last month.

The new program will grant leave to more borrowers to reduce their interest rates, in some cases permanently, and to defer principal payments until borrowers refinance or sell their homes.

Modifications are available to mortgages owned by the agency of JPMorgan and some loans it services that are owned by investors.

For borrowers who have option ARM mortgages — what one. suffer customers to make monthly payments in this way low that their loan balances can rise — JPMorgan will offer modifications to eliminate that so-called negative amortization.

JPMorgan said it inherited numerous option ARMs from WaMu, and a portfolio it acquired when it bought Bear Stearns earlier this year.

The program is only for owner-occupied properties and only for borrowers who show a willingness to pay, so customers should be durable make mortgage payments to demonstrate their intent.

JPMorgan said it will reach through to eligible homeowners to offer modifications. Customers who are concerned they might not be good to invent a settlement should call the phone number on their mortgage statement, a spokeswoman before-mentioned.

The bank will establish 24 new regional counseling centers to offer face-to-face help in places through a recondite rate of borrowers whose payments are overdue. Officials said they plan to open offices in California and Nevada, but are still deciding where else.

JPMorgan Chase furthermore plans to allowance 300 besides loan counselors, bringing its total to more than 2,500, and create a process to examine each mortgage before it goes into foreclosure to ensure that the borrower was offered appropriate modifications. That new process wish employ about 150 people.

The bank did not say how much the newly come program will cost the bank, and would not disclose for what reason many of the affected mortgages are from Washington Mutual or in Washington position.

JPMorgan received $25 billion earlier this month as part of a federal bailout pack meant to shore up the economy by encouraging banks to start lending again. The New York Times reported ultimate week that a JPMorgan executive told employees on an internal meeting for consultation dub that he expected the shoal to continue tightening credit while using the federal funds to help it buy other banks.

Melissa Allison: 206-464-3312 or mallison@seattletimes.com

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