J.P. Morgan, Justice Department Reach $50 Million 'Robosigning' Settlement

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.

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