JPMorgan Chase will pay more than $50 million – including cash payments, mortgage loan credits, and loan forgiveness – to over 25,000 homeowners who are or were in bankruptcy.
Chase will also change internal operations and submit to oversight by an independent compliance reviewer.
In the proposed settlement with U.S. Department of Justice’s U.S. Trustee Program, Chase admitted that it filed more than 50,000 payment change notices in bankruptcy courts across the country that were signed by people who hadn’t reviewed the notices.
More than 25,000 notices were signed with 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 people employed by a third party vendor who had other work assignments.