J P Morgan Chase & Co. (JPM) said it would not begin new foreclosure proceedings on some loans. The company said it is in the process of finding ways to make payments easier on $110 billion of problem mortgages.
The company said it might modify the terms of $70 billion in mortgages for borrowers, who are behind on payments. This plan would cover about 400 thousand borrowers, who would be moved into loans with lower interest rates, smaller principal amounts and more-affordable terms. The company would also open 24 centers to provide counseling in areas with high delinquency rates.
The company said the plan is expected to be implemented in the next 90 days. However, until such changes could be made, the company said it would not put any loans into foreclosure.
Already, the company had helped an additional 250 thousand borrowers with $40 billion in mortgages, under existing loan-modification programs.
JP Morgan launched the plan days after receiving $25 billion in federal capital from the Treasury's program to shore up financial institutions and get credit flowing.
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May 08, 2026 15:50 ET Manufacturing and services sector survey results and labor market data from main economies were the highlight on the economics news front this week. Factory orders and jobs report dominated the news flow in the U.S. Similarly, industrial production data from German garnered attention in Europe. In Asia, purchasing managers’ survey results from China and the central bank decision from Australia were in focus.