U.S. Rep. Barney Frank (D-Mass.), who a day before proposed a moratorium on new foreclosures until the Obama plan is completed, on Friday made public a letter from JPMorgan CEO Jamie Dimon making the pledge to halt new foreclosures through March 6. Citi CEO Vikram Pandit on Wednesday made a similar pledge in testimony to the House Financial Services Committee, which Frank chairs.
Citi, in a company press release Friday, reiterated Pandit's pledge to Congress. The company said it would expand an ongoing moratorium in which the bank is working with homeowners that have "sufficient income for affordable mortgage payments" and are trying to stay in their primary home. Citi said it was committed to the moratorium through March 12, or until the Obama plan is finalized.
Obama is devising a program that would use tax dollars to subsidize mortgage payments for certain homeowners who are struggling financially. Numerous reports citing sources close to the matter say the administration is committed to spend $50 billion on foreclosure prevention and establish national standards for modifying home loans.