JP Morgan Chase 2014 Annual Report Download - page 249

JPMorgan Chase & Co./2014 Annual Report 247
Loan modifications
The Firm is required to provide borrower relief under the
terms of certain Consent Orders and settlements entered
into by the Firm related to its mortgage servicing,
originations and residential mortgage-backed securities
activities. This borrower relief includes reductions of
principal and forbearance.
Modifications of residential real estate loans, excluding PCI
loans, are generally accounted for and reported as TDRs.
There were no additional commitments to lend to
borrowers whose residential real estate loans, excluding PCI
loans, have been modified in TDRs.
The following table presents new TDRs reported by the
Firm.
Year ended December 31,
(in millions) 2014 2013 2012
Home equity:
Senior lien $ 110 $ 210 $ 835
Junior lien 211 388 711
Mortgages:
Prime, including option ARMs 287 770 2,918
Subprime 124 319 1,043
Total residential real estate –
excluding PCI $ 732 $ 1,687 $ 5,507
Nature and extent of modifications
Making Home Affordable (“MHA”), as well as the Firm’s proprietary modification programs, generally provide various
concessions to financially troubled borrowers including, but not limited to, interest rate reductions, term or payment
extensions and deferral of principal and/or interest payments that would otherwise have been required under the terms of the
original agreement.
The following table provides information about how residential real estate loans, excluding PCI loans, were modified under the
Firm’s loss mitigation programs during the periods presented. This table excludes Chapter 7 loans where the sole concession
granted is the discharge of debt.
Year ended
Dec. 31,
Home equity Mortgages
Total residential real estate
- excluding PCISenior lien Junior lien Prime, including option ARMs Subprime
2014 2013 2012 2014 2013 2012 2014 2013 2012 2014 2013 2012 2014 2013 2012
Number
of loans
approved
for a trial
modification 939 1,719 1,695 626 884 918 1,052 2,846 3,895 2,056 4,233 4,841 4,673 9,682 11,349
Number
of loans
permanently
modified 1,171 1,765 4,385 2,813 5,040 7,430 2,507 4,356 9,043 3,141 5,364 9,964 9,632 16,525 30,822
Concession
granted:(a)
Interest rate
reduction 53% 70% 83% 84% 88% 88% 43% 73% 74% 47% 72% 69% 58% 77% 77%
Term or
payment
extension 67 76 47 83 80 76 51 73 57 53 56 41 63 70 55
Principal
and/or
interest
deferred 16 12 6 23 24 17 19 30 16 12 13 7 18 21 12
Principal
forgiveness 36 38 11 22 32 23 51 38 29 53 48 42 41 39 29
Other(b) —— — —— — 10 23 29 10 14 8 611 11
(a) Represents concessions granted in permanent modifications as a percentage of the number of loans permanently modified. The sum of the percentages exceeds
100% because predominantly all of the modifications include more than one type of concession. A significant portion of trial modifications include interest rate
reductions and/or term or payment extensions.
(b) Represents variable interest rate to fixed interest rate modifications.