Summary
JPMorgan Chase & Co. (JPM) filed an 8-K on April 14, 2011, to disclose that the Firm and its subsidiary, JPMorgan Chase Bank, N.A., have entered into Consent Orders with the Federal Reserve and the Comptroller of the Currency (OCC), respectively. These orders pertain to the company's activities in residential mortgage servicing, foreclosure, and loss mitigation. As a result of these Consent Orders, JPM is required to develop and submit a comprehensive action plan within 60 days detailing steps to ensure compliance with the orders. Furthermore, corrective actions for certain identified issues must be implemented within 120 days. The company will also engage an independent consultant to review its foreclosure actions from January 1, 2009, to December 31, 2010, and must remediate any identified errors or deficiencies, including potential reimbursement to borrowers for financial harm. The full Consent Orders are attached as exhibits to this filing.
Key Highlights
- 1JPM and its subsidiary have entered into Consent Orders with the Federal Reserve and the OCC.
- 2The Consent Orders relate to residential mortgage servicing, foreclosure, and loss mitigation activities.
- 3The company must submit a comprehensive action plan to regulators within 60 days.
- 4Corrective actions for specific issues are required within 120 days.
- 5An independent consultant will review foreclosure actions from January 1, 2009, to December 31, 2010.
- 6JPM must remediate identified errors or deficiencies and may need to reimburse borrowers for financial injury.
- 7Copies of the Consent Orders are attached as exhibits (Exhibit 99.1 and 99.2).