JPMorgan Chase & Co. has become the third mortgage servicer to sign up for the Second-Lien Modification Program, also known as 2MP.
The other servicers participating are Bank of America Corp. and Wells Fargo & Co.
Under 2MP, homeowners may see the interest rate on their second-lien loan reduced to 1% for five years. To qualify, borrowers must have completed a trial modification of their first mortgage.
JPMorgan Chase said Monday that it will modify second-lien loans no matter whether it or another company services the borrower's first mortgage.
David Lowman, the New York banking company's head of home lending, said 2MP makes it easier to coordinate modifications with other servicers because of consistent standards.