JP Morgan has renegotiated 79,000 mortgages to Bank of America’s 28,000 under the federal mortgage modification program — in spite of the fact that B of A has twice JP Morgan’s number of delinquent loans on its books thanks to its ownership of Countrywide.
(In case you wondered, that means B of A owns a grand total of 796,000 mortgages whose borrowers are more than 60 days behind on their payments.)
So what is to account for the vast difference? B of A says it has extended mortgage mod offers to 100,000 homeowners, so it’s possible the bank got a late start on the program, which officially launched in March. The bank has certainly shown flexibility towards other kinds of consumer debt: earlier this year we talked to a lawyer who told us a small business owner client of hers had settled a $14,000 debt with the bank for $2,900.
Maybe it’s another testament to the lacking leadership of Ken Lewis, who comes up short by this metric next to his fellow embattled CEO Vikram Pandit of Citigroup, which says it has modified as many mortgages as B of A despite reporting “only” 185,000 bad mortgages on its books.
(And wait: the zombie bank that needed a $44 billion bailout because it “liked the risk” owns just over a fifth the delinquent mortgages of Bank of America? We’re confused…)
The progress report on the program, like so many things in this economy, raises more questions than it answers. But it does provide new evidence of two things we knew already: not all banks are the same degree of screwed, and Jamie Dimon knows how to get things done:
Jamie is married to Judith Kent Dimon, whom he met at business school. (His less-than-smooth pickup line: “I’m going home, and I want you to go with me.”)
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.