By Katy Stech
A J.P. Morgan Chase & Co. unit struck a $50 million deal
with regulators who accused the bank of filing "robosigned"
mortgage documents to bankruptcy courts across the country.
Under the deal with the U.S. Justice Department, JPMorgan Chase
Bank N.A. promised to make to payments to more than 25,000
homeowners, including some who received inaccurate payment-increase
notices during their bankruptcy cases.
The deal came after bank officials were accused filing of tens
of thousands of documents to bankruptcy courts that weren't
actually reviewed by the people who attested to their accuracy.
"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 in a statement that announced the
settlement. "Such unlawful and abusive banking practices can
deprive American homeowners of a fair chance in the bankruptcy
system, and we will not tolerate them."
A spokesman for the bank declined to immediately comment.
The payments to homeowners come in the form of cash payments,
mortgage-loan credits and loan forgiveness.
Write to Katy Stech at katherine.stech@wsj.com
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