Loan Fiasco
The second-largest US bank, JPMorgan Chase & Co. ousted David Lowman, mortgage chief after military personnel were overcharged on loans and other borrowers were improperly foreclosed on. To repair its mortgage unit, JPMorgan has been taking many steps. The mortgage unit posted at least $3.3 billion in losses during the first quarter in this year. In February, Lowman was directed to start reporting to Frank Bisignano, as the chief administrative officer.
Citigroup’s chief compliance officer, Cindy Armine had hired by the Bank to increase oversight as chief control officer of home lending. JPMorgan was agree to reduce mortgage rates for all deployed soldiers to settle claims it overcharged military personnel on their mortgages and seized homes of 27 active-duty military personnel who were protected by the Service members Civil Relief Act and to pay $56 million. The military foreclosures were the bad mistake the bank has ever made, Jamie Dimon ,as the Chief executive said.
The bank also has committed to created a special loan-modification program for veterans, agreed to forgive loan balances for anyone wrongfully foreclosed on, reduced the interest rate for active-duty soldiers from 6 percent to 4 percent for one year, and hiring 100000 veterans over 10 years.