U.S. bank chief mobbed by angry borrowers

WASHINGTON Tue Apr 13, 2010 7:31pm EDT

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WASHINGTON (Reuters) - The mortgage chief of the United States' second largest bank was mobbed by angry borrowers on Tuesday after he invited customers to speak to him if they feared foreclosure of their homes.

The JPMorgan Chase & Co executive was at a congressional hearing in Washington when a lawmaker asked him who mortgage borrowers could turn to if they felt his bank's employees were not helping them hold onto their homes.

"Come to me," said David Lowman, chief executive for JPMorgan Chase & Co's home mortgage business in response to the question from Massachusetts Democrat Barney Frank.

Minutes later, around 50 borrowers burst from the audience and presented Lowman with a 6-page document alleging his bank reneged on a pledge to help struggling homeowners.

The activist who organized the protest said Lowman did not want to talk and left the hearing.

"He ran. He ran like a dog with its tail between his legs," said Bruce Marks of the Neighborhood Assistance Corporation of America (NACA), which helps homeowners avoid foreclosure. "He was scared to death because he doesn't really want to talk to homeowners."

The incident is symptomatic of frustrations among U.S. homeowners as defaults and foreclosure filings dominate the housing sector more than three years after the property bubble began to deflate.

NACA organizes events where borrowers try to get loan modifications with lenders. The group says JPMorgan signed up to the NACA program but dropped out in December.

A JPMorgan spokesman declined to comment on the complaint.

(Reporting by Corbett Daly, additional reporting by Al Yoon; writing by Andrew Hay)

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Comments (22)
fireturtler wrote:
JPMorgan couldn’t care less about struggling loan holders. This is typical of a banker saying things they don’t really mean.
Banks only care about making money. It is their business and any talk of wanting to help consumers is just a PR come on to try to get more depositers/loan clients.
These guys borrow money at 0% and sell it to you for 5, 6, 10 or even 25% so don’t ever think a big bank is on your side. You are just the means to generate money for them and their share holders. These guys are theives that prey on the gullible and are only nice to them as long as they think they can get more money from them.
Banking regulation is a MUST or they will never server the public interest.

Apr 13, 2010 8:03pm EDT  --  Report as abuse
GetRealsoon wrote:
One way or another these people put in loans designed to fail are going to be heard.

Apr 13, 2010 8:05pm EDT  --  Report as abuse
GOBO wrote:
Yeah it’s the banks FAULT!

Just because the dim witted home buyer thought they could afford that $650,000.00 house payment with 5% down while working at Walmart doesn’t mean they should STILL HAVE TO PAY! They are not responsible, I agree 100%. And I am willing to pay whatever is necessary in federal income tax to make sure he can keep that house!

You keep running Mr. Banker Dog Man!

Apr 13, 2010 8:20pm EDT  --  Report as abuse
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