Case Details for "J.P. Morgan Chase Bank "

J.P. Morgan Chase Bank settles residential mortgage loan class action

J.P. Morgan Chase Bank agreed to provide $19.92 million in cash refunds to members of a class of individuals who allege that the lender violated the Real Estate Settlement Procedures Act (RESPA) when it charged them a post-closing fee with the origination of their residential mortgage loans. The loans were made in connection with residential mortgage loans obtained between Sept. 22, 2001, and Dec. 31, 2008.

The Plaintiff sued Chase in September 2004, alleging that the lender violated Section 8(b) of RESPA when it charged an unearned post-closing fee of $225 for a loan she obtained in September 2003 to refinance a residential loan. Approximately 50,000 people were charged a post-closing fee ranging from $125 to $325 for reviewing documents received from the settlement agent to ensure that the agent followed Chase's closing instructions, correcting any mistakes in the documents, retrieving any documents that were missing from the file, combining the existing closing documents with the existing underwriting documents in a particular order and sending the combined documents to the National Post Closing (NPC) center and forwarding any late-arriving documents to NPC. According to the ruling, the post-closing fee was charged primarily in the New York area until 2007, when Chase shifted to a fee structure that did not include a post-closing fee.

Under the settlement agreement, each class member will receive 100 percent reimbursement of the post-closing fee paid, plus interest at 5 percent per annum. In addition to the refunds, Chase has agreed to pay attorneys' fees and counsel expenses for Cohen and the class as well as the costs of notice and settlement administration. Cohen will receive $15,000 in recognition of her contributions as class representative and as compensation for her post-closing fee.

Posted on:2009-10-02
Company: J.P. Morgan Chase Bank
Class: consumers charged a charged a post-closing fee made in connection with residential mortgage loans obtained between Sept. 22, 2001, and Dec. 31, 2008
Scope: Nationwide
Type of Case: Consumer
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