Military Home Foreclosure Lawsuit Settlement Reached With JPMorgan-Chase
A military home foreclosure class-action lawsuit, filed by a Marine Corps captain, has been settled by JPMorgan Chase & Co. after the company admitted to violating the Servicemembers Civil Relief Act (SCRA).
The SCRA sets mortgage interest rates at 6 percent while service members are on active duty and bans any foreclosure proceedings for nine months after the service member returns from active duty. The Marine Corps captain alleged that the giant mortgage bank had failed to reduce the interest rates on his home while he served.
An investigation, reported by Simon Zhen of MyBankTracker in JPMorgan Chase Military Mortgage Lawsuit Reaches Settlement,’’ found that about 6,000 active military homeowners were adversely affected by the lender’s practices, with 18 homes foreclosed upon in violation of federal law.
Information in this post gathered in association with a Clarksville military divorce attorney
If approved, JPMorgan Chase will pay $12 million to the 6,000 service members with an additional $15 million to be distributed for individual damages. The company had already paid out $6 million to military personnel. The additional $6.4 million will be set aside for victims of wrongful foreclosures. About $8 million will be paid in attorney’s fees.
Following its public apology in February, JPMorgan Chase announced a number of goodwill programs designed for military homeowners, service members and veterans. The program includes:
- Home ownership assistance.
- Changing the SCRA pricing to reduce mortgage interest rate.
- An enhanced mortgage modification program.
- An alliance with corporations to offer training, education and jobs to military members and veterans.
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