JPMorgan Chase to refile foreclosure affidavits in coming weeks
JPMorgan Chase (JPM) expects to begin refiling corrected foreclosure affidavits in 40 states and the District of Columbia within a couple of weeks. Charlie Scharf, the bank's CEO of retail financial services spoke told investors Thursday at the Bancanalysts Association of Boston Conference that recent affidavit problems affected roughly 127,000 mortgage loans. JPMorgan Chase, Bank of America (BAC), and Ally Financial (GJM) suspended foreclosure proceedings after employees signed foreclosure affidavits without reviewing the documentation or having a notary present. Each, including Wells Fargo (WFC), which said it is taking a cautionary measure, has begun refiling those affidavits. Scharf said 65,000 of the affected loans were in pre-judgment, 24,000 already had judgment and 38,000 took place in nonjudicial states and under review. Another 8,200 occupied REO properties had evictions stopped. "New processes are in place to ensure we fulfill all procedural requirements going forward," Scharf said. "If we find any foreclosures in error, we will fix them." The bank began training all employees involved in the process and is having outside counsel certify the employees and review the procedures. Scharf added that foreclosures should not be delayed any longer than necessary and any further postponements could damage communities and the broader economy. "There is a way to go in this mortgage crisis and the backlog of aged delinquent loans needs to be cleared," Scharf said. Write to Jon Prior.