Chase Bank Loan by BenIke


									Chase Bank recently announced that from Jan -July 2010, it has assisted approximately 900,000
homeowners interested in modifying their home loan. What's interesting about this
announcement is that Chase is actually doing something to address the three major complaints
that have plagued both HAMP (the Federal "Home Affordable Mortgage Program) as well as the
entire banking and loan modification industry. Here are the three major pitfalls and what Chase
is doing about them.

Problem One. The loan modification process confuses most homeowners.. The majority of
homeowners throughout the United States originally purchased their home through a realtor or
mortgage broker who held their hand throughout the buying process and guided them. To help
bring a homeowner up to speed to do a loan modification, Chase now assigns a counselor to each
customer that is working with Chase; this counselor walks the customer through the modification
process and is their primary contact with Chase from start to finish.

Problem Two. Banks commonly lose documentation and ask homeowners to resend documents.
Most homeowners who have encountered financial difficulty find it difficult to send the
necessary documentation to a lender and hold a job at the same time. What makes things worse,
some homeowners learn that after sneaking off at lunch to fax the financials from a Kinko's, that
the documents previously sent were either lost, incorrect or never received by the financial
institution. The other day, for example, a person at a bank notified me that an application had
been rejected because it was missing a zipcode on the address. She told me that resubmitting the
correct document should be an easy task, not knowing how precarious the current job market is
and how difficult some companies make it for their employees to do personal tasks while on the
job. To make things easier for homeowners, Chase has established a centralized location for
document collection and imaging, making it easier to review a customer's file and reducing the
need for borrowers to resend documents.

Problem Three. Loan modifications take too long. Most homeowners have been promised that
their modification will be approved after making three monthly trial payments only to learn that
after making seven or eight trial payments they are no closer to gaining approval than when they
first started. To help speed things up, Chase has hired 8,000 new credit counselors to help
complete the loan modification evaluation within 30 days of receiving borrower's completed
application package.

By expanding their team to assist customers, Chase can now weed through their applicants more
effectively. They can communicate better and help those fortunate enough to qualify and
discover the homeowners who are not eligible for a modification but who might want to pursue a
short sale or other foreclosure prevention option. Still the statistics for loan modification
approval from Chase are not encouraging. From Jan - July of 2010, only 27% of the modification
applicants offered for the Chase HAMP program had gained approval, and 38% of applicants
through Chase Bank's own loan modification program had been approved. But at least it's a start
in the right direction!

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