Dimon’s Foreclosure Moratorium Letter

Today, JP Morgan Chase and Citigroup agreed to implement a three-week moratorium on new home-mortgage foreclosures. Below is the letter Jamie Dimon, JPM’s CEO, sent to Rep. Barney Frank on the moratorium. The letter is courtesy of The Wall Street Journal:

February 12, 2009

The Honorable Barney Frank
2252 Rayburn Building
Washington, DC 20515

Dear Chairman Frank:

As I noted during yesterday’s hearing in the House Financial Services Committee, JP Morgan Chase has worked hard to be at the forefront of foreclosure prevention and modification efforts to keep families in their homes.

Yesterday, you proposed a temporary foreclosure moratorium, and Congressman David Scott subsequently asked lenders to commit to a three-week moratorium until Treasury implements a new modification plan.

Today we have initiated a foreclosure moratorium through March 6, 2009:

we will not add to the foreclosure process any new owner-occupied residential loans that are owned and serviced by JPMorgan Chase. This moratorium replicates the 90-day foreclosure freeze we announced on October 31, 2008. We believe three weeks is adequate time for the Treasury to announce – and for us to implement – a new plan.

We stand ready to work with you to put the appropriate processes in place, including a national modification standard, to reduce the incidence of foreclosure and to encourage long-term, sustainable home mortgages.

Sincerely,
Jamie Dimon

cc: The Honorable Spencer Bachus
cc: The Honorable David Scott
cc: The Honorable Timothy Geithner