JPMorgan Chase (JPM) has distributed close to $90 million to customers through a rewards program for those who have both a checking account and a mortgage with the bank.
The program, established four years ago, offers customers 1% back, either in cash or applied against the principal of their mortgage, when they set up automatic monthly mortgage payments from a JPMorgan Chase checking account. The bank said Thursday that its Mortgage Cash Back program has paid out $37 million so far this year and $87 million to roughly 368,000 borrowers since it was established four years ago.
"We want our customers to know how much we value their business," said Kevin Watters, the bank's chief executive of mortgage banking. "That's why our Mortgage Cash Back program rewards customers who have both their mortgage and checking accounts with us."
Few banks offer rewards programs that let customers reduce the principal of their mortgage. Since 2007, Wells Fargo (WFC) has marketed a credit card that gives customers bonus points that can be used for principal reduction. Citigroup (NYSE:C) offered a similar card a decade ago, but has since discontinued it.