Pending settlement reached in JPMorgan Chase class-action military mortgage lawsuit

By April 26, 2011 Uncategorized

Earlier this year, JPMorgan Chase admitted to improperly overcharging thousands of military service members on their mortgages and foreclosing on their homes. As the result of a class-action lawsuit filed in a federal court in Beaufort, South Carolina, JPMorgan has agreed to pay $56 million to settle those claims.

The pending settlement includes the following terms:

  • A total of $27 million will be paid to approximately 6,000 active-duty service members who were overcharged on their mortgages, and will also be used to lower interest rates on their mortgages and to return homes that were improperly foreclosed on.
  • Approximately $6 million in payments have already been made to service members who were overcharged on their mortgages.
  • Approximately $6.4 million will be paid to service members who may have undergone ‘wrongful foreclosure practices.’
  • Another $8 million will be paid in legal fees to the service members’ attorneys
  • JPMorgan will be required to reduce interest rates on all deployed service members’ mortgages for one year to 4%
  • All houses that were improperly foreclosed upon, but remain unsold, are to be returned.  
  • For those houses already sold, JPMorgan will pay the service members the fair market value of the property.
  • JPMorgan will forgive any outstanding mortgage balances for those service members who were improperly foreclosed upon.
  • Any remaining unused funds will be donated to the charity of choice selected by the U.S. military.

The above-referenced terms have been agreed to by all the parties involved, however the final approval of the settlement has yet to be issued by U.S. District Judge Margaret B. Seymour.

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