Congress does not like the way that most bailout money is going to banks. It wants to see the little guy with the underwater mortgage and stagnant income get some direct help. Federal agencies say that working with millions of homeowners is too complex, at least for now, and that the current legislation does not go far enough to aid the system mortgage-by-mortgage.
All that wrestling about who will help people who are going to get thrown out of their homes was addressed by JP Morgan (NYSE: JPM, Stock Forum). It will simply wade into its mortgage pool and help those who cannot help themselves. Some cheaters may make in through a loophole, but the big bank is not letting that deter it.
The U.S. bank will renegotiate as many as $70 billion of its mortgages and freeze foreclosures for a much as 90 days.
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