Socially Responsible Lending: How "Big Banks" Fall Short

Hypocrisy in lending is unacceptable--especially when many of the "Big Banks" received billons of dollars from the government to help homeowners. They are now turning their backs and acting "holier than thou."
By: Christopher Patrick King
 
June 6, 2011 - PRLog -- There are not a lot of things that really get my “blood boiling,” but hypocrisy is definitely one of them.  Recently, Jennifer Liberto reported in CNNMoney.com that JPMorgan Chase CEO Jamie Dimon rejected the idea that Chase would participate in new government programs aimed at helping struggling homeowners by taking “write-downs” on Chase mortgages.  A write-down is when the bank agrees to take a loss on the principal loan balance to enable the client to refinance to a more affordable mortgage, often through government financing programs like FHA.  The bank benefits because it receives an influx of cash from the loan being paid off, although it takes a small loss and is not paid back the full amount of the original loan.

“Principal write-down for people who could pay their mortgages?  Yeah, that’s off the table,” Dimon said (CNNMoney.com, “JPMorgan’s Dimon: No Mortgage Write-downs,” March 31, 2011).  He continued to say that some states and municipalities may go bankrupt because of the financial crisis surrounding the number of mortgage defaults, and stated that this won’t “shatter America [it’s] part of the credit cycle.”

I find it abhorrent that the CEO of one of America’s largest banks is so cavalier about the lives of “ordinary” Americans.  I find it especially troubling since Chase took billions of dollars from the Federal Government in bail-out funds when the mortgage crisis began.  I guess bailing out corporations is acceptable to him—clearly that’s part of what the free market is about, right?  The Fed should bailout corporations when they make poor decisions.  But then Dimon is not willing to participate in programs when the programs help homeowners?  That level of disconnect is disgusting.

When I say that CPK Mortgage believes in “Socially Responsible Lending,” I mean that primacy rests with our clients and with our localities.  Assisting families with their dreams of homeownership, putting people into better financial positions and giving back to the community through service: these are values that American banking companies should emulate.  This is what we are all about at CPK Mortgage.
End
Source:Christopher Patrick King
Email:***@cpkmortgage.com Email Verified
Zip:90045
Tags:Banks, Mortgage, Help For Homeowners, Refinances, Responsible Lending
Industry:Banking, Real Estate, Mortgage
Location:Culver City - California - United States
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