Tuesday, May 5, 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:


About this blog

PhillyDeals posts raw drafts and updates of Joseph N. DiStefano's columns and stories about Philly-area finance, investment, commercial real estate, tech, hiring and public spending, which he's been writing since 1989, mostly for the Philadelphia Inquirer.

DiStefano studied economics, history and a little engineering at Penn, taught writing at St. Joe's, and has written the book Comcasted, more than a thousand columns, and thousands of articles, and raised six children with his wife, who is a saint.

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

Joseph N. DiStefano
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