In shady news of the day, JPMorgan Chase fined $48 mil for not complying with Robosigning settlement
JPMorgan Chase & Co. has been fined $48 million for not complying with the terms of a 2013 settlement, over fraudulently endorsed affidavits. According to the Office of the Comptroller of Currency (O.C.C.), this is the bank’s last chance to settle their wrongdoing in its handling of foreclosures after the credit crisis of 2007-2008.
Not complying with mandates
Chase, along with a handful of other banks, was initially ordered to review individual files for wrongdoings. But after that order failed, most banks agreed in 2013 to pay a combined $10 billion in settlements, and to meet new requirements. Chase specifically agreed to pay $2 billion in settlements, and to meet 98 different new requirements.
But in failed attempt number two, Chase still couldn't seem to live up to their mandates and, according to the O.C.C., was still engaging in "unsafe and unsound practices" as early as last year.
They also failed to meet 10 of the 98 new requirements, including new practices for communicating with borrowers, and enforcing its final compliance policies.
$48 million to resolve
The O.C.C. responded to their failed compliance by penalizing Chase in June 2015, and restricting their purchases of servicing rights until they fulfilled the rest of their agreements.
According to their spokesperson, those obligations would be fulfilled in just a few months. But more than a few months later, in this week's deal, JPMorgan Chase has now been freed of those commitments.
In attempt number - I lost count - to punish JPMorgan Chase, the largest U.S. bank is now ordered to pay $48 million dollars in order to resolve their wrongdoings, dating back to 2008.
They aren't alone
According to the O.C.C., Chase isn't the only servicer who failed to meet requirements. Wells Fargo, U.S. Bancorp and Santander Bank NA couldn't make it happen, either. However, Bank of America Corp., Citigroup, Inc., PNC Financial Services Group, Inc., and OneWest Bank did meet their requirements from the 2013 settlement.
Their spokesperson declined to comment on the recent settlement, but hopefully Chase can meet its new agreement, and most importantly, begin to use trusted practices.