In a settlement with the Department of Justice, JP Morgan Chase has agreed to pay more than $50 million to more than 25,000 homeowners through cash payments, mortgage loan credits, and loan forgiveness. The payment will resolve DOJ accusations that JP Morgan Chase filed robo-signed mortgage documents in bankruptcy courts.
The DOJ press release explains:
In the proposed settlement, Chase acknowledges that it filed in bankruptcy courts around the country more than 50,000 payment change notices that were improperly signed, under penalty of perjury, by persons who had not reviewed the accuracy of the notices. More than 25,000 notices were signed in the names of former employees or of employees who had nothing to do with reviewing the accuracy of the filings. The rest of the notices were signed by individuals employed by a third party vendor on matters unrelated to checking the accuracy of the filings.
The DOJ release also has details about how the money will be allocated and other provisions of the settlement, such as changes the company has agreed to make to its internal procedures.
The settlement will not affect the rights of homeowners to seek relief against JP Morgan Chase.
The settlement has been filed in the U.S. Bankruptcy Court for the Eastern District of Michigan. It is not final until approved by the court.