NEW YORK—JPMorgan Chase has agreed to a $50.4-million settlement with the Justice Department acknowledging it used robo-signing for documents that were sent to homeowners in bankruptcy, and for other abuses.
The settlement comes even though in 2012 JPMorgan Chase was part of a $25-billion national mortgage settlement of allegations that it had used robo-signed foreclosure documents, as well. According to the Justice Department’s U.S. Trustee Program, it found that the big bank continued the practice for borrowers who were in bankruptcy.
According to the Justice Department, over 2012-13 JPMorgan sent approximately 50,000 notices of payment changes to borrowers in bankruptcy that were robo-signed by people who could not verify their accuracy, according to a release from Trustee Program.
The Trustee Program added that JPMorgan also failed to file timely, accurate notices of escrow statements and mortgage payment changes with 25,000 homeowners in bankruptcy. Almost all of the restitution will be in refunds and credits, according to authorities.