WASHINGTON – JPMorgan Chase & Co. and Citigroup Inc. are expanding their efforts to halt home foreclosures while the Obama administration develops its plans to help the U.S. housing market.
JPMorgan Chief Executive Jamie Dimon said the New York company plans to halt new foreclosures for owner-occupied home loans through March 6. Dimon made the pledge in a letter to Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee, who released it on Friday.
“This moratorium replicates the 90-day foreclosure freeze we announced on Oct. 31,” Dimon wrote. “We believe three weeks is adequate time for the Treasury to announce — and for us to implement — a new plan.”
Citigroup’s foreclosure moratorium applies to all “Citi owned first mortgage loans that are the principal residence of the customer as well as all loans Citi services where we have reached an understanding with the investor” until President Barack Obama’s administration has finalized the details of the loan modification program or March 12, whichever is earlier, according to a company release. New York-based Citi’s action expands on a similar effort that it started in November……”
