Chase Settles Over Robo-signed Mortgage Documents in Bankruptcy Court
Thought you’d heard the last of robo-signing? It rears its head once again in a recent settlement between JPMorgan Chase and the U.S. Department of Justice. This time, Chase was accused of robo-signing documents that it filed in bankruptcy court.
The documents were what are called payment-change notices, filings that notify homeowners and bankruptcy debtors that their payments are changing due to, for example, interest rate adjustments.
“It is shocking that the conduct admitted to by Chase in this settlement, including the filing of tens of thousands of documents in court that never had been reviewed by the people who attested to their accuracy, continued as long as it did,” said one assistant attorney general who worked on the case.
The attorneys general of most states, along with the Department of Justice, previously used robo-signing concerns to get banks and mortgage servicers to provide more homeowners with loan modifications under the National Mortgage Settlement.
In this case, however, Chase is being required to pay more than $50 million in refunds and mortgage debt forgiveness.
The official press release is here: U.S. Trustee Program Reaches $50 Million Settlement with JPMorgan Chase to Protect Homeowners in Bankruptcy
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