In reading about the record penalty assessed against JP Morgan/Chase for its part in the 2008 economic meltdown, articles said, “The agreement…includes $4 billion in relief for unspecified consumers and $9 billion in payments and fines…” One radio report said that any consumer who had experienced being underwater with a JP Morgan/Chase mortgage, had been turned down by JPM/C or otherwise did business with JPM/C could file a claim. Will consumers be able to benefit? If so, how will consumers do so? Will it be like signing up for a class action law suit?
Terry Says: I spoke with a Chase spokesperson, and the news is not good for those expecting a windfall if they lost their homes to foreclosure over the past five years. Of the total $13 billion settlement, $2 billion will go to the Federal government as a fine, and $4 billion will go to FHFA (parent company of Fannie and Freddie, which means it goes to shareholders, which are primarily the US Government), and $3 billion is being distributed to holders of mortgage backed securities. (In that category, the State of Illinois will receive $100 million, which will be distributed to the Teachers Retirement Fund and the State University retirement system, and also the Illinois State Board of Investments, all of which lost money on the mortgage backed securities they held.
That leaves $4 billion in consumer assistance, and it is NOT going to people who were hurt in the past. Instead, it will be used to help current Chase mortgage holders who are in trouble and cannot pay their mortgages. Those people will get more assistance re-financing, and even in principal reductions. But this is only for people who are not current on their mortgages. In other words, the people who do the “right” thing and sacrifice to stay current on their mortgage will not benefit. But the people who have given up, can’t pay, and are behind will now have some hope of help!
If that latter sentence describes you or anyone you know who is a JPM/Chase mortgage customer currently, then IMMEDIATELY call Chase at 866-550-5705, and describe your problems, and remind Chase they have $4 billion in “help” to give out to troubled borrowers!