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JPMorgan Chase Bank NA has reportedly agreed to pay more than $11 million to settle a class action lawsuit alleging it improperly charged interest on paid-off mortgages insured by the Federal Housing Administration (FHA).
The Chase FHA interest class action lawsuit, which was initially filed in 2016, accused Chase of breaching promissory notes underlying borrowers’ FHA-insured home loans when Chase collected interest for the remainder of the month during which the loan was paid off (post-payment interest) without providing a certain type of disclosure to borrowers.
Chase denies any wrongdoing but agreed to settle the FHA interest class action lawsuit to avoid the cost and uncertainty of ongoing litigation.
On July 5, U.S. District Judge Stephanie M. Rose preliminarily approved the proposed Chase class action settlement.
“The court finds on a preliminary basis that the settlement as set forth in the agreement falls within the range of reasonableness and was the product of informed, good-faith, arm’s-length negotiations between the parties and their counsel, and therefore meets the requirements for preliminary approval,” Judge Rose’s order states.
Judge Rose also certified a Class of borrowers with FHA-insured loans for which Chase allegedly charged interest after the loans had been paid off.
Specifically, Judge Rose certified a Class defined as follows: “all persons who had an FHA-Insured Loan for which (i) the FHA-Insured Loan was closed before January 21, 2015; (ii) Chase or its predecessor was the mortgagee or servicer as of the date the total amount due on the FHA-Insured Loan was brought to zero; (iii) Chase collected Post-Payment Interest on the FHA-Insured Loan during the applicable Limitations Period; and (iv) the total amount due on the FHA-Insured Loan was brought to zero on or after July 5, 2009, and on or before March 30, 2018.”
Under the terms of the proposed Chase class action settlement, it will not be necessary for Class Members to submit a Claim Form in order to receive benefits; they will automatically receive a settlement check if they qualify.
Each Class Member will receive a minimum payment of $5. Class Members who paid more than $50 in post-payment interest will receive an increased payment.
The final approval hearing has been scheduled for Nov. 5, 2018.
Top Class Actions will post updates to this class action settlement as they become available. For the latest updates, keep checking TopClassActions.com or sign up for our free newsletter. You can also receive notifications when this article is updated by using your free Top Class Actions account and clicking the “Follow Article” button at the top of the post.
The plaintiffs are represented by Ward A. Rouse of Rouse Law PC, Richard M. Paul III and Ashlea G. Schwartz of Paul LLP and by Eric H. Gibbs, Michael Schrag and Aaron Blumenthal of Gibbs Law Group LLP.
The Chase FHA Interest Class Action Lawsuit is Matthew Audino, et al. v. JPMorgan Chase Bank NA, Case No. 4:16-cv-00631, in the U.S. District Court for the Southern District of Iowa.
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16 thoughts on$11M Chase FHA Interest Class Action Settlement Gets Green Light
that is what you get for settling
you should have to court
JP Morgan sending out a 5.00 check and most places won’t take a 5.00 check because it cost 5.00 to 6.00 to cash it .If you don’t have bank account it goes into the trash and CHASE is aware of this . They collected 20.000 on my loan and sold it . i was behind one payment and i paid and paid more than original payment of 480.86 for over 1 year and half . Never got it caught up. Then in 2019 they set my loan up without notice and still will not explain but i understand what they did and they denied it . Over 4000.00 in Corp Fee’s , CHASE really can screw you is all i got to say
chase is a crook
you have proof you need to take them to court and do NOT settle out court
go the full rought
Have they already used up that $3 Trillion Obama gave them?
lets start with one payment missed 480.86 in June 2018 ever month after that i paid 600 ,550 ,600.00 ,900.00 1.200.00 up to 2020 and lost my loan it started over i had 17 years left on it the balance went back to 69.000 plus they got loan from government 20.000 my balance is 86.000 little over they no they did wrong , they lied , like in in March i made payment 550.00 on 20th i called to post a payment for the month A post not payment made plain . he ran it when i was on still on phone .Guess what no payment for March couple days later i looked i was three payments behind not counting March yet , Oct ,Jan ,Feb i sent proof about 80 times even to corporate office by Fed Ex to case worker that was over the other case worker never got their . When the loan started over they went on grab the 20.000 wasn’t enough . so they took my internist, that wasn’t enough , added over 4000.00 in franchise’s fee’s took that from the payment i made in 2019 ,other 2000.00 and something in fee’s they got so many fee’s they made sure i got nothing back but bad loan and lost everything
Really excited about this $5 check I should be getting soon!
CEO Jamie Dimon’ he going said the 5.00 might cut the budget . Dimon’s compensation package includes $1.5 million in salary and $30 million in performance-based incentives, according to a filing released late Thursday. Of the $30 million in incentives, $5 million will be delivered in cash and $25 million will come in stock compensation, according the filing.Jan 23, 2020
Why not make them pay back the FULL amount they ripped people off? What… They stole $50 from me, and they get a $7 check? Wth
EXACTLY! They make how much off this scam and then they don’t have to pay back more than they stole? It means they profit from the scam no matter what and it means that they will continue doing it because it’s profitable…. who cares about the slaves!
If they took 49.99$ and you get a 5$ it means they made 44.99$ off you… That’s a nice profit… not just do it a few million times… that is hundreds of millions they get to make WITHOUT recourse!
The government and banking are all scams to extract wealth from the slaves!
Just today I got a ck in the mail for a little over $32. I wonder what were the percentage/ratios that were used to come up with how much money each of us will be reimburse? I worked so hard to pay my house off before 40yrs old and now I feel ripped off.
Thanks
that is because the GOP congress has set it up to protect corporations… not people.
that is what happens when you give in to chase and settle out of court
you need to go to court and let a jury settle it and chase will probable not get off so cheap and you might even get you should have
thats is how the crooked chase wins because you people give in and let chase off cheap after they made millions or even billions off all of you
I have not heard from anyone. Is this a fake website?
how about loan to fix your house up
You can search for home grants repairs in your area. If You are a senior. You should qualify for a home grant. Please be careful. They are scamming people bad.
Well, I have a mortgage situation with another bank forcing me to pay a complete 30 years. When I have paid over 18 years extra payments. Can you help me?