Obama criticizes JPMorgan over mortgage practices

The Obama administration recently criticized JPMorgan Chase for failing to help struggling homeowners make their monthly home loan payments and avoid foreclosure. In the November edition of the administration's Housing Scorecard, JPMorgan Chase was considered in need substantial improvement in dealing with homeowners.

CNN Money reported the administration wants Chase to improve its communication with homeowners, as the lender has not made progress in its lending practices. To encourage these changes, the U.S. Treasury Department is withholding servicer incentive payments to Chase for the third consecutive quarter. The Treasury is also refusing to give these incentives to Bank of America for failure to show improvements.

Both banks were recently named in a lawsuit filed by Massachusetts Attorney General Martha Coakley, who accused the institutions of fraudulent mortgage practices and illegal foreclosures on homeowners, the source reported.

The CEO of JPMorgan Chase, Jamie Dimon, recently told investors that the bank has built up reserves for all claims against its mortgage lending unit and will continue to fight to legal battles the unit has created. The Street reported Chase is facing litigation more than $54.9 billion of mortgage-backed securities lawsuits and repurchase claims over shoddy lending practices. 

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