JPMorgan, Citi, Morgan Stanley Temporarily Halt Foreclosures

“We believe three weeks is adequate time for the Treasury to announce – and for us to implement – a new plan.”
Jamie Dimon, CEO JPMorgan in letter to Congress

From CNBC: Three Big Banks Are Halting Foreclosures for Now

Citigroup, JPMorgan Chase and Morgan Stanley said they had placed a moratorium on foreclosing on some home loans to give the government time to launch a $50 billion mortgage relief program.
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The Obama plan under consideration would seek to help homeowners before they fall into arrears on their loans. … Under the evolving plan, homes would undergo a standardized reappraisal and homeowners would face a uniform eligibility test …

Another “evolving plan”. I think they will discover that there is no easy method for successful loan modifications (as FDIC Chairwoman Sheila Bair discovered when they took over IndyMac). I guess the plan is to buy down loans with the $50 billion – or pay a portion of the monthly payment.

The details will be interesting. I’m curious – how do you measure success when the borrowers aren’t already in default?

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