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The New York bank inherited many of the loans as part of its September purchase of a failed competitor, Washington Mutual Inc. (NYSE:WM), and its move will cover as many as 400,000 borrowers. J.P. Morgan said Friday the borrowers will be moved into loans carrying lower interest rates, smaller principal amounts or other more-affordable terms, The Wall Street Journal reported.

The move came shortly after the bank received a $25 billion capital infusion from the U.S. Treasury’s program to strengthen financial institutions and get credit flowing.

“Our goal in doing this was to come up with something that we think will lead the industry in helping as much as possible on this issue,” said J.P. Morgan executive Charles Scharf.

John Taylor, chief executive of the National Community Reinvestment Coalition, said the action was “a gutsy move on their part. They are bending over backward to try to reach out to these people.”

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