JPMorgan Chase will help distressed homeowners by reducing interest rates or principal balances for $110 billion in mortgages, Bloomberg reports. The restructuring applies to clients of Washington Mutual, which JPMorgan agreed to buy last month. Foreclosures will be suspended on all loans for the next 90 days while the relief efforts are implemented.
“We felt it is our responsibility to provide additional help to homeowners during these challenging times,” said a JPMorgan executive. The program is expected to help 400,000 families, in addition to 250,000 who have already received relief on their home loans. The bank will also open 24 counseling centers in states with high default rates.