JP Morgan Chase 2013 Annual Report Download - page 263

JPMorgan Chase & Co./2013 Annual Report 269
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. At December 31, 2013, there were approximately 36,700 of such Chapter 7 loans, consisting
of approximately 8,800 senior lien home equity loans, 21,700 junior lien home equity loans, 3,100 prime mortgage, including
option ARMs, and 3,100 subprime mortgages.
Year ended
Dec. 31,
Home equity Mortgages
Total residential real estate
- excluding PCISenior lien Junior lien Prime, including option ARMs Subprime
2013 2012 2011 2013 2012 2011 2013 2012 2011 2013 2012 2011 2013 2012 2011
Number
of loans
approved
for a trial
modification(a) 1,719 1,695 1,219 884 918 1,308 2,846 3,895 4,676 4,233 4,841 6,446 9,682 11,349 13,649
Number
of loans
permanently
modified 1,765 4,385 1,006 5,040 7,430 9,142 4,356 9,043 9,579 5,364 9,964 4,972 16,525 30,822 24,699
Concession
granted:(a)(b)
Interest rate
reduction 70% 83% 80% 88% 88% 95% 73% 74% 53% 72% 69% 80% 77% 77% 75%
Term or
payment
extension 76 47 88 80 76 81 73 57 71 56 41 72 70 55 75
Principal
and/or
interest
deferred 12 6 10 24 17 21 30 16 17 13 7 19 21 12 19
Principal
forgiveness 38 11 7 32 23 20 38 29 2 48 42 13 39 29 11
Other(c) —— 29 —— 7 23 29 68 14 8 26 11 11 35
(a) Prior period amounts have been revised to conform with the current presentation.
(b) 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.
(c) Represents variable interest rate to fixed interest rate modifications.