JP Morgan to pay $50M in ‘robo-signing’ settlement

by MPA04 Mar 2015
JP Morgan Chase & Co. has reached a $50 million settlement with regulators over accusations the bank robo-signed mortgage documents to bankruptcy courts across the country.

JP Morgan agreed to make payments to more than 25,000 homeowners, including some who received inaccurate payment-increase notices during their bankruptcy cases, according to the deal with the U.S. Justice Department (DOJ).

The bank will pay $22.4 million in credits and second lien forgiveness to about 400 homeowners. The other $10.8 million will go to 18,000 homeowners in the form of credits or refunds.

Between 2011 and 2013, JPMorgan Chase filed more than 50,000 mortgage payment change notices in bankruptcy courts that had not been improperly signed and reviewed. More than 25,000 of them had the signature of former or current JPMorgan employees who "had nothing to do with" reviewing the accuracy of the bankruptcy filings, the DOJ stated.

JPMorgan has also agreed to let an independent compliance reviewer to scrutinize its operations.



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