October 31, 2008 12:57PM

The JPMorgan Chase Mortgage Modifications

By Ray Hennessey

If you received a mortgage through Chase, EMC or WaMu, there really isn't much excuse right now to not have your morgage reworked. JPM says today it is reviewing all mortgages going into the foreclosure process and suspending all foreclosures temporarily. That, added to a previous program, means that JPM expects to modify $110 billion in mortgages, which include the paper it received when it bought Bear Stearns and Washington Mutual.

There's an added feature: Chase is reaching out to homeowners instead of waiting for them to come to the company.

Two things to think about here. One, banks hate to foreclose nowadays because they don't want to sit around holding property they can't sell. The real estate market is tough on them, too.

Second, Chase is making a politically savvy move here, hoping to head off criticism that it received federal funds but has nothing to help the homeowner. In fact, it throws in a little flight of sycophancy at the end of its release today:

"Chase acknowledges and appreciates the leadership of the U.S. Senate Banking and U.S. House Financial Services committees, the FDIC, a number of state attorneys general and community groups on this important issue, and the critical role they are playing in keeping families in their homes."

Anyone else notice Chase forgot Paulson and Bush?