Commits to lower SCRA rate and increasing modifications, jobs, training, and home ownership assistance for military and veterans

NEW YORK, February 15, 2011 – JPMorgan Chase (NYSE: JPM) announced today it will significantly enhance its programs to help military and veteran customers.

"The programs we are announcing today are a start, but in no way a finish," said Jamie Dimon, Chairman and CEO of JPMorgan Chase. "This company has a great history of honoring military and veterans, and the mistakes we made on military foreclosures are a painful aberration on that track record. We deeply apologize to our military customers and their families for these mistakes. We cannot undo them, but we can take accountability for them, fix them and learn from them. Today we want to begin a new way forward with the military and veteran community to make serving them a core part of how we operate our business every day. Our servicemen and servicewomen deserve nothing less."

The new Chase programs announced today are:

Reduced Servicemembers Civil Relief Act (SCRA) Pricing
Effective 4/1/11, subject to any required approvals, Chase will put in place a rebate or similar program for SCRA-protected military personnel, which will lower eligible borrowers' effective mortgage interest rate to 4% while on active duty and for a year thereafter. That maximum rate is 2% lower than the 6% rate currently required by SCRA.

Military Modification Program
Beginning 4/1/11, Chase will introduce an enhanced modification program for all members of the military who have served on active duty as far back as 9/11/01. The program will be offered to those who are delinquent or having trouble making their mortgage payments. Subject to the required regulatory and investor approvals, the program will go beyond the government's Home Affordable Modification Program (HAMP) requirements. In addition, in cases when we modify any Chase-owned or Chase-serviced primary residential mortgage, if there is a second mortgage on the same property that is also owned by Chase, we will modify the interest rate on the second to 1%.

Home Ownership Assistance


JPMorgan Chase will take significant measurable steps to offer jobs and training to veterans. The company:


Education and Training


Veterans Advisory Council
Chase is forming a Veterans Advisory Council to advise the firm on these programs and other ways we can help the military and veteran community. The Council will be chaired by Tom Higgins, JPMorgan Chase's head of Operational Control and Veterans Affairs. Tom recently joined the firm after 24 years with the US Government. During his career in public service, he worked closely with all branches of the armed forces and served in the US Navy. He has a deep understanding of the unique issues facing our servicemen and women, particularly as they leave and return from active duty.

Enhanced SCRA Controls
Chase has already made several changes to our services and products for military customers, including a dedicated hotline for military customers staffed by a unit of experts that is open 24 hours a day, seven days a week. We have greatly enhanced controls to ensure that loans are properly categorized, SCRA protection periods are identified, and multiple verifications are done and documented to confirm that borrowers are not SCRA-eligible.

Chase is pleased to announce that Maggie Belknap has been named head of SCRA oversight across the firm. Ms. Belknap is a retired Colonel and the former head of Economics and Finance on the faculty at West Point. She is also a West Point graduate and served in the army from 1981 - 2008, including a tour of combat duty in Desert Storm I. She joined JPMorgan Chase in 2008 and is currently Head of Global Operations Control Management for Treasury Services.

"We will continue to monitor vigilantly how we serve military and veteran customers and will not be satisfied until we are 100% convinced that we are doing the right thing in every case," said Charlie Scharf, CEO of Retail Financial Services. "We understand we have breached the trust of some of our military customers and we know we need to work hard to earn it back, and we are deeply committed to doing that. We want to work with the military community as partners going forward to become the best company in any industry to serve our military heroes."

"Our men and women in the military protect this country and our way of life every day," said Frank Bisignano, Chief Administrative Officer of JPMorgan Chase, responsible for Chase Home Lending. "They deserve special status and benefits for the privilege they give us to live freely. As part of making this right for our military customers, we will help them to own a home, pay down their debt, get training and find a job. And that's just the beginning."

Any military borrower who has a question about a Chase loan should call our hotline numbers at:


For more information on the firm's current programs available to military and veterans, visit

JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.1 trillion and operations in more than 60 countries. The firm is a leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of consumers in the United States and many of the world's most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at