The class action lawsuit filed by Marine Corps Capt. Jonathan Rowles, who charged that the bank failed to reduce the interest rate on his mortgage. Read: Chase Bank Apologizes for Military Mortgage Mistakes A federal investigation revealed that JPMorgan had overcharged nearly 6,000 active military personnel while 18 military homes were foreclosed upon. Under the settlement agreement filed April 21 in U.S. District Court in Beaufort, S.C., and awaiting court approval, JPMorgan will pay $12 million to approximately 6,000 service members while another $15 million will be allocated for individual damages. JPMorgan has already made $6 million in payments to affected military service members and the bank will set aside another estimated $6.4 million for additional payments to borrowers who may have been subjected to wrongful foreclosures. Additionally, JPMorgan will pay $8 million for legal fees and costs incurred by affected military personnel involved in the class action lawsuit. We are sorry and regret the mistakes our firm made on mortgages for members of the military, and wed like to thank Capt.
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JPMorgan Settles Military Mortgage Suits for $56 Million
The lender has agreed to return houses that have been improperly foreclosed upon and not yet sold and to pay fair market value for those already auctioned off, according to the filing. It also will forgive any remaining mortgage debt of military borrowers who were protected by the law and mistakenly foreclosed upon. JPMorgan officials said in todays statement theyve already made $6 million in payments to military borrowers who were overcharged. Under the settlement, the bank also will provide an estimated $6.4 million in additional benefits to soldiers who may have been subjected to wrongful foreclosure practices. Finally, the company will pay $8 million in legal fees for Rowles and other affected military personal who sued over the mishandled mortgages, according to court filings. Judge Must Approve U.S.
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How the U.S. mortgage settlement can help military members
The official watchdog of this settlement, Joseph Smith, reminded military members and veterans this week that the mortgage deal, which settled allegations of foreclosure abuses, has special provisions for them. The message is a particularly important one for San Diego County, a community of roughly 260,000 veterans, according to the county . “Service members, veterans and their families make daily sacrifices and dedicate their lives to protect all Americans, and its our nations responsibility to help protect their best interests,” said the Office of Mortgage Oversight in its outreach letter. The veterans mortgage settlement: Helps service members whose foreclosures, going back to Jan. 1, 2006, violate the Servicemembers Civil Relief Act , a federal law that protects active members of the armed forces in situations such as foreclosures, rent and mortgage rates. The restitution amount is lost equity, interest and $116,785. Requires lenders to provide restitution to service members who were overcharged interest in their mortgages.
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