(Phoenix, Ariz. - Dec. 31, 2010) Attorney General Terry Goddard today announced an agreement with Chase Home Finance LLC (“Chase”) in which Chase has agreed to adopt “Best Practices” in its servicing of home mortgage loans in Arizona. These Best Practices substantially incorporate the “Borrower’s Bill of Rights” proposed by Goddard earlier this year.
“This agreement is an early New Year’s present for struggling homeowners trying to stay in their homes,” Goddard said. “By adopting these Best Practices, Chase has agreed to establish a new and higher standard in servicing loans. I applaud Chase for stepping forward to provide much more transparency in the home loan modification process. The Best Practices will eliminate delays, miscommunications, and mistakes in servicing loans that turned may modification attempts into foreclosures, and I urge all mortgage servicers to adopt a similar ‘Borrower’s Bill of Rights.’”
Under the Agreement, Chase has agreed to:
- Provide clear information on how to obtain a modification and avoid foreclosure;
- Make decisions on borrowers’ complete modification requests within 30 days;
- Stop home foreclosures during active loan modification negotiations;
- Appoint a dedicated Relationship Manager for each borrower seeking modification;
- Take a formal second look at modification requests that are turned down, with opportunities for borrowers to raise disputed facts.
In addition, Chase will pay $600,000 to assist the Attorney General in educating consumers on issues pertaining to home ownership and avoiding foreclosure, and to conducting outreach to assist Arizona homeowners in obtaining modifications.
Goddard urged all homeowners who are in or are facing foreclosure to seek assistance as soon as possible. Homeowners can speak with a HUD-approved housing counselor by calling the Arizona Foreclosure Helpline, toll-free, at 1-877-448-1211. Borrowers who believe they have been the victim of mortgage fraud or other scams should contact the Attorney General’s Office at (602) 542-5763. Additional foreclosure prevention resources are available on the Attorney General’s Web site, www.azag.gov.
For more information, contact Press Secretary Janey Pearl at (602) 725-2200.