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Home | Daily Dose | JPMorgan Begins to Offer Homeowner Relief
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JPMorgan Begins to Offer Homeowner Relief

JPMorgan to Offer Homeowner Relief

Judge’s Ruling Paves Way For Class-Action Suit against JPMorgan Chase

In accordance with the terms of its settlement with the government, JPMorgan to Offer Homeowner Relief to struggling homeowners.

Joseph A. Smith Jr., who received a joint appointment from the bank and the government to monitor compliance with the terms of the agreement released his initial report Tuesday outlining the first steps taken in what will be a long process of the bank disbursing $4 billion in loan aid.

Under the terms of the agreement struck in 2013, the bank obtains credit for relief that it provides in four major categories: modification, rate reduction/refinancing, low income and disaster area lending, and anti-blight lending.

Some categories are worth more to the settlement than others so the credit given is not dollar for dollar. The report asserted that the bank has amassed $6.3 million in credit so far.

To get the credit, JPMorgan submitted 100 loans for review. Much more is still to come. Smith characterized the first steps as a “dry run”.

The bank has until 2017 to fulfill the requirements under the settlement and Mr. Smith maintains that there is not yet enough information to determine whether the bank is on schedule to complete them on time. A more thorough report is due out later this year.

The settlement was negotiated through the Residential Mortgage-Backed Securities Working Group, a joint state and federal unit formed in 2012 by President Obama to investigate wrongdoing within the mortgage-backed securities market that helped to trigger, contribute to, or exacerbate the U.S. financial crisis.

The settlement requires the bank to submit quarterly reports that include a limited random sample of loans as test cases for Mr. Smith to make the determination of whether they are living up to their obligations.

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About Author: Derek Templeton

Derek Templeton
Derek Templeton is an attorney based in Dallas, Texas. He practices in the areas of real estate, financial services, and general corporate transactional law. His experience includes time as an Attorney Adviser for the U.S. Small Business Administration and as General Counsel for a nonprofit organization in Dallas. A self-avowed "policy junkie," he has a keen interest in the effect that evolving federal policy has on the mortgage, default servicing, and greater housing industries.

6 comments

  1. Antionette johnson 0.00 (Rep Points)

    JPMorgan claims they were the “owner” of my loan and the servicer, as of ,7/1/2014 they sold the servicing to Nationstar Mortgage out of Lewisville,Tx. Being that Chase claims they are still own the “NOTE” and “DEED” which I know they don’t have due to an Forensic Audit, do we still qualify for the settlement. I feel Chase is trying to sell off mortgages that they don’t actually own but are still acting as if they do. I have been trying to get a modification/principal reduction for over 5yrs and each time they have come up with some crap. My husband and I are seniors and have own our home for 25+ and I plan on KEEPING my our home, meaning I will keep fighting Chase who has perpetrated Fraud, used MERS, violated TILA/RESPA and do not have the note and deed together. I know see why they gave the loan for servicing to Nationstar to hide these crimes against us and many other homeowners.
    Namaste

  2. There needs to be a working group on the possible widescale fraud perpetrated on the American people by Chase. The only reason it will take until 2017 is because the process is rigged by MERS type insiders or Rust Consulting who ended up paying out pennies. There are plenty of complaints with the CFPB so there’s no excuse Mr. Smith. I would bet my house, they are trying to steal, that this process is rigged against homeowners just like every settlement and lawsuit. After 6 years the lies get worse and worse. There is hope though with multi million dollar homeowner victory in small town in No CA where they said these emperors wear no clothes. Then there was Chase’s loss on fraud and trying to get out of $250,000 in lawyer fees about a month ago. I have a combo fraud loan that Chase is manipulating the modification process and the anti blight parts of settlements and local law. Still, I’m treated with the same arrogance from Chase and elected officials that the jury in Yuba, CA spoke out loud and clear against. Chase offered me a $500,000 forgiveness on loan I have disputed since 2008 with the condition that property could not be in disrepair. They were fully aware of City actions and repairs needed, If Chase had complied with city anti blight or even the mortgage settlement the City would not have taken extreme actions and deprived me of $30,000 in rental income as I live day to day. The City states there is no relevance while they sue Chase and collect funds from the settlements. Meanwhile the CA AG office ran out of money and could not answer my half a million dollar+ case and Kamala Harris is supposed to be one of the good guys? Lawyers, whistleblowers, Wall St and government are the ones benfitting with billions of dollars of “aid” while homeowners are left out in the cold. There is something very wrong in this country right now beyond the ususal immigration, anti government, Middle East scares.

    @Cynthia I can share some information with you. Can reach me here http://bit.ly/Si8EL5

    • I am here in florida and a plaintiff to the latest class action, the Chasemdlsettlement that Chase lost. This settlement shows all the shenanigans that Chase has pulled on 1000s of people struggling to keep their homes. Chase breached contract, implied and express with their loan modifications. They mislead people into believing they were going to get HAMP modifications and after people completed the trial terms of the HAMP, they were not offered a permanent modification or Chase reneged on the terms somehow and then they slammed these people into foreclosure. you talk about adding salt to a wound. Now that this settlement is in the settling stages, Chases slimeball attorneys are speeding up my foreclosure case so they will not have to honor the terms of this class action which include a new loan modification and curing any delinquent fees. Chase has no plans of stopping their lies and deceitfulness and all I can say is if you read this and you are a part of the Chasemdlsettlement, watch out because if they can circumvent any of the benefits you are due from this class action, Chase will weasel out of it sure as how they got there in the first place. You cant teach an old dog new tricks!

  3. they sold my note and now they dont even service the loan anymore so just how does this help mr pol?

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