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    JPMC Robo-Sign Article, Housing Wire, March 3, 2015 PDF

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    The DOJ announced a $50 million settlement with JPMorgan Chase over claims that Chase misfiled over 50,000 payment change notices in bankruptcy courts that were improperly signed. However, Chase disputes that it admitted to the DOJ's claims and says the settlement agreement contained no admission of liability. Chase's spokesperson said bank employees did review the notices for accuracy in over 99% of cases, but the electronic signature process was flawed. Under the settlement, Chase will pay over $50 million to over 25,000 homeowners affected.

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    JPMC Robo-Sign Article, Housing Wire, March 3, 2015 PDF

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    The DOJ announced a $50 million settlement with JPMorgan Chase over claims that Chase misfiled over 50,000 payment change notices in bankruptcy courts that were improperly signed. However, Chase disputes that it admitted to the DOJ's claims and says the settlement agreement contained no admission of liability. Chase's spokesperson said bank employees did review the notices for accuracy in over 99% of cases, but the electronic signature process was flawed. Under the settlement, Chase will pay over $50 million to over 25,000 homeowners affected.

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    The DOJ announced a $50 million settlement with JPMorgan Chase over claims that Chase misfiled over 50,000 payment change notices in bankruptcy courts that were improperly signed. However, Chase disputes that it admitted to the DOJ's claims and says the settlement agreement contained no admission of liability. Chase's spokesperson said bank employees did review the notices for accuracy in over 99% of cases, but the electronic signature process was flawed. Under the settlement, Chase will pay over $50 million to over 25,000 homeowners affected.

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    20 views3 pages

    JPMC Robo-Sign Article, Housing Wire, March 3, 2015 PDF

    Uploaded by

    FraudInvestigationBureau
    The DOJ announced a $50 million settlement with JPMorgan Chase over claims that Chase misfiled over 50,000 payment change notices in bankruptcy courts that were improperly signed. However, Chase disputes that it admitted to the DOJ's claims and says the settlement agreement contained no admission of liability. Chase's spokesperson said bank employees did review the notices for accuracy in over 99% of cases, but the electronic signature process was flawed. Under the settlement, Chase will pay over $50 million to over 25,000 homeowners affected.

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    JPMorganChase:HoldthephoneonthoseDOJ
    robosigningcharges
    ClaimsDOJmisrepresentedsettlementagreement
    BenLane
    March3,2015
    JPMorganChase(JPM)ispushingbackattheU.S.DepartmentofJusticesclaimsthatitadmittedto
    misfilingmorethan50,000paymentchangenoticesinbankruptcycourtsthatwereimproperlysigned,
    underpenaltyofperjury,bypersonswhohadnotreviewedtheaccuracyofthenotices.
    TheDOJannouncedearlierTuesdaythatitreacheda$50millionsettlementagreementwithChase,and
    thatChaseadmittedthatmorethan25,000ofthe50,000paymentchangenoticesweresignedinthe
    namesofformeremployeesorofemployeeswhohadnothingtodowithreviewingtheaccuracyofthe
    filings.
    But,accordingtoChaseVicePresidentandHeadofExternalCommunicationsJasonLobo,Chasemade
    nosuchadmissions,despiteagreeingtothesettlement.
    Lobosaidthesettlementagreementcontainednoadmissionofliability,asisoftenthecaseinsettlements
    betweentheDOJ,otherfederalagenciesandfinancialinstitutions.
    InthetextofthereleasefromtheDOJ,ActingAssociateAttorneyGeneralStuartDelerysaidthatChase
    didindeedadmittothecharges.
    ItisshockingthattheconductadmittedtobyChaseinthissettlement,includingthefilingoftensof
    thousandsofdocumentsincourtthatneverhadbeenreviewedbythepeoplewhoattestedtotheir
    accuracy,continuedaslongasitdid,Delerysaidintherelease.
    SuchunlawfulandabusivebankingpracticescandepriveAmericanhomeownersofafairchanceinthe
    bankruptcysystem,andwewillnottoleratethem.
    Itshouldbenotedthatinthetextoftherelease,DOJusedthetermacknowledgedinsteadof
    admittedwhenreferringtoChasesconductinregardstotheimproperlysignednotices.
    Ourpaymentchangenoticeswereappropriatelyreviewedandsubstantivelycorrectinthe
    overwhelmingmajorityofcases,eventhoughtheprocessforfilingthemelectronicallywasflawed,
    Lobosaid.Wehavechangedoursystemtoensureelectronicsignaturesonbankruptcyfilingswill
    matchtheindividualwhoreviewedthefilingforaccuracy.
    LoboalsosaidthatChasetakesissuewiththeDOJsdescriptionoftheeventsChaseadmittedtoas

    robosigning.InthepressreleaseannouncingthesettlementwithChase,theDOJdidnotmentionrobo
    signinginthestatementitself,butdidmakespecificmentionofitinthesubheadlineoftherelease,
    whichread:
    SettlementAddressesRoboSigningandOtherImproperPracticesinBankruptcyCase
    Wedonotthinkitisaccuratetocharacterizeasrobosigningaprocessinwhichabankemployee
    reviewedtheaccuracyoftheinformationineachpaymentchangenotice.Here,bankemployees
    reviewedtheaccuracyoftheinformationinthe50,000PCNsandthenoticeswereaccurateover99%of
    thetime,"Lobosaid.
    "TheissuewasthattheemployeeswhoreviewedthePCNsdidnotelectronicallysignandfilethePCNs
    withthebankruptcycourt,asrequiredbythebankruptcycourtelectronicfilingrules,"Lobocontinued.
    "Thebankhasenhanceditsprocess,andtodaythebankemployeesreviewingthePCNshaveelectronic
    filingcredentialsandtheyelectronicallysignandfilethePCNsthattheyreview.
    Underthetermsofthesettlementagreement,Chasewillpaymorethan$50milliontomorethan25,000
    homeownerswhoarecurrentlyorpreviouslywereinbankruptcy.Thepaymentswillbemadeintheform
    ofcashpayments,mortgageloancreditsandloanforgiveness,including:
    $22.4millionincreditsandsecondlienforgivenesstoabout400homeownerswhoreceived
    inaccuratepaymentincreasenoticesduringtheirbankruptcycases
    $10.8milliontomorethan12,000homeownersinbankruptcythroughcreditsorrefundsfor
    paymentincreasesordecreasesthatwerenottimelyfiledinbankruptcycourtandnoticedtothe
    homeowners
    $4.8milliontomorethan18,000homeownerswhodidnotreceiveaccurateandtimelyescrow
    statements.Thisincludescreditsfortaxesandinsuranceowedbythehomeownersandpaidby
    Chaseduringperiodscoveredbyescrowstatementsthatwerenottimelyfiledandtransmittedto
    homeowners
    $4.9million,throughpaymentofapproximately$600perloan,tomorethan8,000homeowners
    whoseescrowChasemayhaveappliedinamannerinconsistentwithescrowstatementsit
    providedtothehomeowners
    $7.5milliontotheAmericanBankruptcyInstitutesendowmentforfinancialeducationand
    supportfortheCreditAbuseResistanceEducationProgram
    Yearsafteruncoveringimpropermortgageservicingpracticesandenteringintocourtordered
    settlementstofixflawedsystems,itisdeeplydisturbingthatamajorbankwouldstillmakeimproper
    courtfilingsandfailtoprovideadequateandtimelynoticestohomeownersaboutpaymentsdue,
    DirectorCliffWhiteoftheU.S.TrusteeProgramsaid.
    OtherservicersshouldtakenotethattheU.S.TrusteeProgramwillcontinuetopolicetheirpractices
    andwillworktoensurethatthosewhodonotcomplywithbankruptcylawprotectionsforhomeowners
    willpayaprice,justasChasehasdoneinthismatter.

    BenLaneisareporterforHousingWire.Previously,heworkedforTownSquareBuzz,ahyperlocalnews
    service.HeisagraduateofUniversityofNorthTexas.

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