JPMorgan Chase (JPM) has provided relief to 46,404 borrowers in a gross principal amount of $7.6 billion as part of 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.
This is according to the second report on the settlement from Joseph Smith, the director of the Office of Mortgage Settlement Oversight. The report contains Chase’s self-reported gross Consumer Relief and the credited equivalent that its internal review group asserted on August 14, 2014.
Additionally, Chase's internal revenue group (HRG) found that Chase has earned $868,616,504 in credit toward its $4 billion obligation under the settlement as a result of the asserted relief. The totals were as of the second quarter of 2014.
“We are pleased to have provided more than 46,000 families $7.6 billion in mortgage relief – earning $869 million in consumer credit – through June. We are working very hard to help as many homeowners as quickly as possible, and look forward to formal validation of our effort by the Monitor later this year,” a JPMorgan Chase spokesperson said.
However, Smith noted that he has not yet validated the Consumer Relief credit claimed in this report.
“My team and I are performing in-depth testing and review of Chase’s and the HRG’s work in order to do so,” said Smith. “I will report on that additional validated credit before the end of the year. Chase will not receive credit under the settlement until I am satisfied it has met its obligations.”
In July, Smith announced that JPMorgan Chase had correctly claimed $6,325,087 of consumer relief credit in relation to the settlement.
(Source: Joe Smith, click for larger image)