JPMorgan Chase (JPM) so far has correctly claimed $6,325,087 of consumer relief credit in relation to its $13 billion agreement to settle claims regarding the packaging, marketing, sale and issuance of residential mortgage-backed securities by Chase, Bear Stearns and Washington Mutual to investors before the financial crisis.
Joseph Smith, as monitor of the settlement, released his initial report overseeing Chase as it distributes $4 billion in credited consumer relief.
Under the settlement, Chase is required to provide relief to borrowers within essentially a four-year period ending Dec. 31, 2017.
“Chase has begun to provide this relief, and my team and I have confirmed that Chase has provided approximately $6 million in credited consumer relief,” said Smith.
“Prior to submission, Chase informed me that it would transfer 100 loans to its internal review group as a trial to ensure its testing procedures were appropriately designed. I consented to this approach. Chase further advised me that it had provided creditable relief to borrowers on additional loans through March 31 that were not included in the group of 100 initially tested. This additional activity will be reported to me in mid-August,” he added.
“We have been working closely with Joe Smith and his team to verify that our reporting methodologies – on a limited sample of loans – align with their expectations and accurately represent our consumer relief activities before our full reporting cycle begins in August,” a spokesperson for JPMorgan said.
As of March 31, JPMorgan Chase has complied and correctly followed all requirements of the settlement.