JPMorgan Chase Reports Record Profits, But Homeowners Say They Are Left Out In The Cold

With a big assist from its mortgage division, JPMorgan Chase reported a record quarterly profit of $5.3 billion on Friday, another encouraging sign that the housing market is finally recovering from a collapse that has cost nearly 4 million families their home.

“We believe the housing market has turned the corner,” said Jamie Dimon, the bank’s chief executive, in a release.

What is less clear is whether JPMorgan Chase has turned the corner in its dealings with struggling homeowners. Under a $25 billion legal deal struck earlier this year with state and federal authorities, JPMorgan Chase and four other large banks promised to overhaul mortgage "servicing" practices, following widespread reports that the bank had botched the management of thousands of home loans, leading in many instances to unnecessary foreclosures. The deadline for compliance was Oct. 3.