NEW YORK | Sun, July 3, 2011 5 pm EDT
NEW YORK (Reuters) - Bank of America Corp. and JPMorgan Chase & Co began to change tens of thousands of mortgages where the banks consider particularly dangerous loans, even if the borrowers were not asked, the New York Times reported Sunday.
In some cases, the paper said, the banks are revealed slashing the amount borrowers toward, citing a case in Florida where main balance of women has been reduced by half.
The paper said that banks are targeting holders of borrowing rate adjustable pay option, a type of loan where borrowers have the opportunity to skip some of the principal and interest payments and having the added amount of return on the loan.
These loans "option arm" were considered a risk particularly high in the wake of the financial crisis; the two banks collectively still have tens of billions of dollars of loans in their portfolios.
A Professor of law, quoted by the Times said the banks were behave in adversarial way, by modifying certain loans which should not be and amending some loans that should be.
Spokesmen for the two banks were not immediately available to comment.
(Reporting by Ben Berkowitz.) (Editing by Maureen Bavdek)
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