JPMorgan Must Pay $48M for Foreclosure Practices

by San Antonio Attorney

JPMorgan Chase & Co. is slated to pay $48 million to resolve its lapses in processing foreclosures during the credit crisis that started in 2008, the Office of the Comptroller of the Currency said.

The biggest bank in America will have to pay for not following the terms of a 2013 agreement over its unfair practices, according to the federal agency.  The new settlement will exclude JPMorgan’s duties from the previous mandate of the agency, which required the bank to pay $2 billion in repayments to borrowers and penalties.

JPMorgan was one of the largest banks in the U.S.  that were accused of robo-signing loan papers.  The banks were initially ordered to review every single file for misconduct, but it was discontinued and nearly all of the companies involved opted to settle their blunder by paying a total of $10 billion with the regulators and to revamp their practices.

JPMorgan along with some of the banks, failed to fulfill what they have promised to do in those resolutions, the regulators reported.  The Office of the Comptroller of the Currency has learned last year that JPMorgan was still engaging in illicit practices and did not comply 10 of the 98 requirements, which include new procedures for notifying borrowers and implementing its new policies.

In June, the bank has been penalized by the Office of the Comptroller of the Currency but it was lifted on Tuesday as part of the deal made by the bank with the agency.

The banks that had complied with their requirements are Citigroup, Bank of America, OneWest Bank and PNC Financial Services Group.

But Wells Fargo failed to meet the requirements and had been penalized as well.  Both HSBC and Wells Fargo are likely to face the toughest penalties because of the amount of unsolved issues, according to the Office of the Comptroller of the Currency.



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