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NEW YORK (AP) — The U.S. Department of Justice says JPMorgan Chase will pay $50 million to 25,000 homeowners for failing to properly review payment-change notices sent to homeowners who were in bankruptcy.
The Justice Department says JPMorgan Chase acknowledged it filed about 25,000 payment change notices that were sent to homeowners without a proper review. They were signed in the names of employees who no longer worked for the company or who hadn't reviewed the filings to check their accuracy.
About 25,000 additional forms were signed by employees of another company who weren't responsible for checking the accuracy of the filings.
The agency says the settlement will include cash, mortgage loan credits and loan forgiveness. The largest portion of the settlement, $22.4 million, will be made of up credits and second-lien forgiveness. It will go to about 400 homeowners who received inaccurate notices of payment increases during their bankruptcy cases.
The settlement is subject to approval by the U.S. Bankruptcy Court for the Eastern District of Michigan.
JPMorgan Chase & Co. said the vast majority of its payment change notices were properly reviewed and correct, but the process for filing the notices electronically was flawed. The company said it has changed its system so the electronic signatures on those forms are correct.
The company's shares fell 7 cents to $61.70 in midday trading.
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