Monday, August 31, 2015

Citi backs, JPMorgan fights law to ease home loan terms

Two giant consumer lenders that lost billions in the subprime-mortgage and credit crunch are on opposite sides over a proposed law that would let judges ease home loan terms as an alternaitve to bankruptcy.

Citi backs, JPMorgan fights law to ease home loan terms

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It's a paradox: People with the least ability to pay loans are charged the highest interest rates.

Now, two giant consumer lenders have split over a proposal that would let bankruptcy judges cut home loan rates for distressed borrowers. 

Citigroup backs the plan -- while JPMorgan Chase & Co. chief executive Jamie Dimon opposes it, warning it will make banks want to lend less.

Both banks are being supported by taxpayer investments as the value of their mortgage-backed securities and other assets have fallen.

To read a Financial Times story about the debate over the mortgage-revision law, copy this address to your browser:

http://www.ft.com/cms/s/0/ba131bc2-e2f6-11dd-a5cf-0000779fd2ac.html


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About this blog

PhillyDeals posts drafts, transcripts and updates of Joseph N. DiStefano's columns and stories about Philly-area business, which he's been writing since 1989.

DiStefano studied economics, history and a little engineering at Penn and taught writing at St. Joseph's. He has written thousands of columns and articles for the Inquirer, Bloomberg and other media, wrote the book Comcasted, and raised six children with his wife, who is a saint.

Reach Joseph N. at JoeD@phillynews.com, distefano251@gmail.com, 215.854.5194 or 302.652.2004.

Reach Joseph N. at JoeD@phillynews.com or 215 854 5194.

Joseph N. DiStefano
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