JP Morgan Chase 2015 Annual Report Download - page 261

JPMorgan Chase & Co./2015 Annual Report 251
Nature and extent of modifications
The U.S. Treasury’s Making Home Affordable (“MHA”) programs, 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
2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013
Number of
loans
approved for
a trial
modification 1,345 939 1,719 2,588 626 884 1,103 1,052 2,846 1,608 2,056 4,233 6,644 4,673 9,682
Number of
loans
permanently
modified 1,096 1,171 1,765 3,200 2,813 5,040 1,495 2,507 4,356 1,650 3,141 5,364 7,441 9,632 16,525
Concession
granted:(a)
Interest rate
reduction 75% 53% 70% 63% 84% 88% 72% 43% 73% 71% 47% 72% 68% 58% 77%
Term or
payment
extension 86 67 76 90 83 80 80 51 73 82 53 56 86 63 70
Principal
and/or
interest
deferred 32 16 12 19 23 24 34 19 30 21 12 13 24 18 21
Principal
forgiveness 436 38 822 32 24 51 38 31 53 48 16 41 39
Other(b) ——— ——— 910 23 13 10 14 5611
(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.