Financial Services company and lender JPMorgan Chase announced a company-wide initiative on Thursday, which aims to preserve homeownership through better disclosure measures on mortgage applications. The company says the initiative, which particularly targets nonprime borrowers, is based on safe-lending measures proposed by federal regulators.
“We work closely with borrowers because we know how important it is for a family to own their home,” said David Lowman, chief executive officer of Chase Home Lending. “Our simplified mortgage disclosure and product choices will help meet the goals of borrowers as well as investors, community leaders and regulators in today’s challenging housing market and beyond.”

Chase said it’s campaign will include the following initiatives:
A new upfront disclosure in a simple format. Consumers now can compare important product features for traditional as well as nontraditional mortgages, including more information on how an adjustable-rate feature can affect the monthly payment.
An initial fixed-rate for at least five years on adjustable-rate mortgages for nonprime borrowers to reduce payment shock rise.
The company will employ underwriting guidelines that require borrowers to demonstrate their ability to handle increases in interest rates on non-traditional mortgages.
Tightened credit standards, including making adjustments to acknowledge declining home values in certain markets and reducing the use of high loan-to-value ratios and stated-income products.
Will continue to consider borrowers’ required property tax and homeowners’ insurance payments in determining affordability. Chase offers all its borrowers an option to escrow those payments with Chase.
Will continue its practice of not offering option ARMs, which can expose borrowers to negative amortization when their monthly payment does not cover interest costs.