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March 4, 2015

The Wall Street Journal: J.P. Morgan, Justice Department Reach $50 Million Robo-Signing Settlement

“A J.P. Morgan Chase & Co. unit struck a $50 million deal with regulators who accused the bank of filing “robo-signed” mortgage documents to bankruptcy courts across the country.

“Under the deal with the U.S. Justice Department, J.P. Morgan Chase Bank N.A. promised to make payments to more than 25,000 homeowners, including some who weren’t properly notified that their mortgage payments increased after they filed for bankruptcy protection.

“The deal came after bank officials were accused of filing tens of thousands of documents to bankruptcy courts that weren’t actually reviewed by the people who vouched for their accuracy.

“Specifically, bank officials admitted to filing more than 50,000 payment-change notices that were improperly signed, under penalty of perjury, by persons who hadn’t reviewed the accuracy of the notices, according to Justice Department officials.

“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 Justice Department added.

“It is shocking that the conduct admitted to by Chase in this settlement…continued as long as it did,” said acting Associate Attorney General Stuart F. Delery. “Such unlawful and abusive banking practices can deprive American homeowners of a fair chance in the bankruptcy system, and we will not tolerate them.”

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Read the full Wall Street Journal article by Katy Stech here.

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