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The Responsible Lending Campaign

Mortgage and Lending with Mortgage officer

As a Home Lending employee, it is important you know that Chase is fully committed to helping consumers achieve and sustain homeownership. Just as important, our customers need to know about our commitment. To serve both these purposes, we are launching the "Responsible Lending Campaign."

Recent news about the mortgage market has left some consumers feeling wary of our industry and unsure of their personal level of knowledge about which mortgage suits their needs. In response to the market environment, we've recently restructured some of our products and tightened some policies to ensure that the right customers are qualifying for the right loans. Now more than ever, it is critical that consumers recognize Chase as a reputable and dependable lender. Also, we want you as an employee to be proud of the company you work for and know that our business has a solid future.

As a national lender with widespread local presence, we have a vested interest in helping our customers thrive in communities across the country. In the second quarter, we originated $59.5 billion in mortgages. We grew our originations market share to 8.2 percent placing us fourth among lenders. On the mortgage servicing side, we were the fourth largest with $723 billion and a market share of 6.9 percent. We are on the path to the top and we want to get there by serving our customers the right way.

Being a responsible lender is nothing new for us. The JPMorgan Chase legacy reaches back more than 200 years -- we are a company that stands for trustworthiness, stability and experience.

As a leader among home lenders, we continue to inform consumers about the mortgage industry before they buy homes. In the last 18 months, we held more than 550 educational seminars, as well as distributed a Homeowner Education CD.

We also are committed to working with nonprofit organizations who educate consumers about owning and preserving homeownership. Our Chase Homeownership Preservation Office has facilitated more than 45 foreclosure prevention training sessions for nonprofit counselors, housing advocates and public officials, and has trained more than 1,500 individual participants.

Earlier this year, we participated in U.S. Senator Christopher Dodd's recent Homeownership Preservation summit, and announced our support of his Banking Committee's Statement of Principles for Mortgage Servicers because we believe responsible lenders need to set high standards for the whole industry.

These are just a few examples. Throughout the years, we've always believed that we should only provide home loans when consumers can demonstrate good financial judgement, make meaningful financial decisions, and have the ability to repay a financial obligation.

It is time that we reinforce these beliefs with our employees and share them with the general public. The Responsible Lending Campaign is the vehicle through which we can do this. It is built upon the following guiding principles:

We believe an informed consumer is our best customer

As part of the campaign, the Home Lending sales force will receive customer communication, tools and resources designed to increase consumers' home-buying knowledge. One of these tools is a document we have nicknamed a "nutrition label" because similar to the food industry's nutrition label, it defines all relevant mortgage terms for consumers so they know the conditions of their mortgage before they sign. This document already is being given to every consumer applying for a mortgage with us.

We are committed to creating customers for life

Chase is committed to being the trusted mortgage advisor that consumers turn to when they consider any home lending project. We strive to ensure that consumers have loan choices that are "financially responsible." In doing so, Chase creates a customer relationship that lasts a lifetime. The sales force will receive tools -- such as information about an "annual check up" program, which helps ensure consumers' current mortgage is still the right choice -- to share with their customers.

We want to help consumers achieve and sustain homeownership

Since it is important that Chase helps consumers sustain homeownership, a component of the campaign includes making certain that customers know who to call if their ability to pay their mortgage is at risk. As part of this, both the Retail and HLD channels continue to contact customers whose adjustable-rate mortgages are resetting to ensure they are prepared for the change or offer an alternative mortgage product.

We recognize that homeownership contributes to thriving communities

By ensuring that our customers have mortgages that help them sustain ownership, we contribute to healthy and thriving communities.

The sales force will receive additional details about the campaign soon, including more information about the specific tactics.

Through your efforts and continued hard work, we will make sure that consumers continue to recognize Chase as the industry's "responsible lender."