The U.S. Department of Justice says JPMorgan Chase will pay $50 million to 25,000 homeowners for failing to properly review payment-change notices sent to homeowners who were in bankruptcy.
The Justice Department says JPMorgan Chase & Co. acknowledged it filed about 25,000 payment change notices that were sent to homeowners without a proper review. They were signed in the names of employees who no longer worked for the company or who hadn't reviewed the filings to check their accuracy.
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About 25,000 additional forms were signed by employees of another company who weren't responsible for checking the accuracy of the filings.
The agency says the settlement will include cash, mortgage loan credits and loan forgiveness. It is subject to approval by a U.S. Bankruptcy Court.
JPMorgan did not immediately respond to a request for comment.