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JPMorgan Chase moved on Tuesday to make amends for its treatment of servicemen and women on mortgage loans over the last few years. After an investigative report by NBC News, Chase has admitted that it overcharged 4,500 troops and wrongly foreclosed on 18 of them.
Today the bank said it will:
- Lower the mortgage interest rate for active duty military to 4 percent (2 points less than required by law).
- Start an enhanced modification program for anyone serving in the military after Sept. 11, 2001. Yes, over the past decade. This program will be for anyone delinquent or having problems paying the mortgage.
- Set up a special 24-hour hotline staffed by experts.
- Refuse to foreclose on any active-duty military personnel.
- Donate 1,000 homes to military families and veterans over the next five years in conjunction with its non-profit partners.
- Offer more jobs for veterans.
For more information, see our previous story on msnbc.com: Overcharges on soldiers' mortgages investigated.
The chairman and CEO of the New York bank, Jamie Dimon, said in a news release that the new programs "are a start, but in no way a finish."
"This company has a great history of honoring military and veterans, and the mistakes we made on military foreclosures are a painful aberration on that track record," Dimon said. "We deeply apologize to our military customers and their families for these mistakes. We cannot undo them, but we can take accountability for them, fix them and learn from them."
A South Carolina lawyer representing some of the servicemembers mistreated by Chase, Dick Harpootlian, offered this reaction: "When I was prosecuting cases, I never had a defendant who got caught breaking the law that didn't want to give back what they took and promise to lead a better life."
The full news release from Chase
JPMorgan Chase Announces New Programs for Military and Veterans
Commits to lower SCRA rate and increasing modifications, jobs, training, and home ownership assistance for military and veterans
NEW YORK, February 15, 2011 - JPMorgan Chase (NYSE: JPM) announced today it will significantly enhance its programs to help military and veteran customers.
"The programs we are announcing today are a start, but in no way a finish," said Jamie Dimon, Chairman and CEO of JPMorgan Chase. "This company has a great history of honoring military and veterans, and the mistakes we made on military foreclosures are a painful aberration on that track record. We deeply apologize to our military customers and their families for these mistakes. We cannot undo them, but we can take accountability for them, fix them and learn from them. Today we want to begin a new way forward with the military and veteran community to make serving them a core part of how we operate our business every day. Our servicemen and servicewomen deserve nothing less."
The new Chase programs announced today are:
Reduced Servicemembers Civil Relief Act (SCRA) Pricing
Effective 4/1/11, subject to any required approvals, Chase will put in place a rebate or similar program for SCRA-protected military personnel, which will lower eligible borrowers' effective mortgage interest rate to 4% while on active duty and for a year thereafter. That maximum rate is 2% lower than the 6% rate currently required by SCRA.
Military Modification Program
Beginning 4/1/11, Chase will introduce an enhanced modification program for all members of the military who have served on active duty as far back as 9/11/01. The program will be offered to those who are delinquent or having trouble making their mortgage payments. Subject to the required regulatory and investor approvals, the program will go beyond the government's Home Affordable Modification Program (HAMP) requirements. In addition, in cases when we modify any Chase-owned or Chase-serviced primary residential mortgage, if there is a second mortgage on the same property that is also owned by Chase, we will modify the interest rate on the second to 1%.
Home Ownership Assistance
Chase will not foreclose on any currently deployed active military personnel. This change goes beyond current SCRA requirements, which protects military borrowers against foreclosure only if they took out their loans prior to going on active duty.
Chase believes we now have the systems and controls in place to avoid wrongful foreclosure proceedings on any military covered by SCRA. In cases where we have mistakenly foreclosed on military borrowers who should have been covered by SCRA, in addition to rescinding the sale, we will forgive all their remaining mortgage debt. Going forward, if we ever have a wrongful foreclosure sale on an SCRA covered customer, we will forgive all of their remaining mortgage debt, as well.
Chase will donate 1,000 homes to military and veterans over the next five years through our non-profit partners.
By the end of 2011, Chase will open five new Chase Homeownership Centers in cities near the following large military bases: Ft. Hood (Killeen), Texas; Naval Station Norfolk (Norfolk), Virginia; Ft. Bragg/Pope Air Force Base (Fayetteville), North Carolina; Camp Lejeune (Jacksonville), North Carolina; Ft. Campbell (Clarksville, TN), Kentucky.
In 2011, Chase will host 10 borrower outreach events near large military bases.
Chase will staff all of its Homeownership Centers with employees specifically trained in SCRA, military issues and Chase special military programs.
Jobs
JPMorgan Chase will take significant measurable steps to offer jobs and training to veterans. The company:
Will form an alliance with other major corporate employers to commit to hire 100,000 military and veterans in total over the next ten years. We have already received commitments from several corporate partners and have reached out to many others. We will announce full details of the alliance in the coming weeks.
Will require all of its vendors to disclose its military hiring practices and will make contract decisions in part based on how strong those programs are. This is in addition to our current practice of requiring vendors to disclose their diversity practices.
Education and Training
Through its groundbreaking collaboration with Syracuse University, JPMorgan Chase will now offer a Technology Education certificate exclusively for veterans to prepare them for technology careers. All military who have served on active duty going back to 9/11/01 will be eligible to apply for the free program. It will be delivered online, so students can complete the coursework from any location. JPMorgan Chase employs 20,000 technology employees in the United States and will actively recruit graduates of the school to fill open roles.
For more information about the program, go to www.veterans.syr.edu. Further details on enrollment will be available on chasemilitary.com in the coming weeks.
Veterans Advisory Council
Chase is forming a Veterans Advisory Council to advise the firm on these programs and other ways we can help the military and veteran community. The Council will be chaired by Tom Higgins, JPMorgan Chase's head of Operational Control and Veterans Affairs. Tom recently joined the firm after 24 years with the US Government. During his career in public service, he worked closely with all branches of the armed forces and served in the US Navy. He has a deep understanding of the unique issues facing our servicemen and women, particularly as they leave and return from active duty.
Enhanced SCRA Controls
Chase has already made several changes to our services and products for military customers, including a dedicated hotline for military customers staffed by a unit of experts that is open 24 hours a day, seven days a week. We have greatly enhanced controls to ensure that loans are properly categorized, SCRA protection periods are identified, and multiple verifications are done and documented to confirm that borrowers are not SCRA-eligible.
Chase is pleased to announce that Maggie Belknap has been named head of SCRA oversight across the firm. Ms. Belknap is a retired Colonel and the former head of Economics and Finance on the faculty at West Point. She is also a West Point graduate and served in the army from 1981 - 2008, including a tour of combat duty in Desert Storm I. She joined JPMorgan Chase in 2008 and is currently Head of Global Operations Control Management for Treasury Services.
"We will continue to monitor vigilantly how we serve military and veteran customers and will not be satisfied until we are 100% convinced that we are doing the right thing in every case," said Charlie Scharf, CEO of Retail Financial Services. "We understand we have breached the trust of some of our military customers and we know we need to work hard to earn it back, and we are deeply committed to doing that. We want to work with the military community as partners going forward to become the best company in any industry to serve our military heroes."
"Our men and women in the military protect this country and our way of life every day," said Frank Bisignano, Chief Administrative Officer of JPMorgan Chase, responsible for Chase Home Lending. "They deserve special status and benefits for the privilege they give us to live freely. As part of making this right for our military customers, we will help them to own a home, pay down their debt, get training and find a job. And that's just the beginning."
Any military borrower who has a question about a Chase loan should call our hotline numbers at:
- Mortgage questions: 877-469-0110
- Credit Card questions: 888-520-3863
- All other consumer product questions: 800-242-7399
Leave a Comment:
Shouldn't the headline read "Chase Seeks to Reverse Overcharging of Soldiers' Mortages After Being Caught"...?
I thought the same thing. How about the don't do it in the first place. Just makes me wonder what other loopholes they haven't been caught using because I know that Chase would have kept overcharging the soldiers if they hadn't been caught. Banks SEVERELY need more regulations; it seems like they can do whatever they want with our money.
Foreclosing on a serving soldier's house....think about how disgusting a human being you have to be to do that.
Now if we can only sue the local municipalities that have been charging us 5 % a year of our home value as "tax" for the privalage of their early retirements, easy jobs. I personally, find all large organizations, take from whoever they can (gov'ts just as much as evil corporations).
But there are lots of good people in both, don't get me wrong....it it the very nature of large organizations to increase bueacracy and decrease value provided.
I don't have one around me, but I will NEVER bank with Chase.
Do ya think Bill Daley moving from the Corporate Suite at JPMorgan/Chase to the Oval Office had anything to do with the swift resolution to this "situation"???.
Think there was a phone call when this story hit the paper ???
"Fix it and fix it NOW, make this go away".
Take a look at Obama's new Chief of Staff and see the incestuous relationships of Daley, Bill Clinton, AlGore Campaign, Fannie Mae, Bank of Chicago, his brother the Mayor of Chicago, his father, Mayor of Chicago.....beginning to see a pattern here ??...I am.
http://en.wikipedia.org/wiki/William_M._Daley
How about a DOJ investigation of for ALL the people, like Non-Soldiers, that were scammed by JPMorgan/Chase ???
Exactly. Seems politicians and corporations only get things right when the press publicizes their reprehensible actions.
Oxymoron of the day...."Corporate Ethics"
That is awful BIG of them, isn't it? Didn't these banks get bailed out, and what about the houses that they already foreclosed on and booted soldiers families out, what are they going to do for them, huh? This is a case where I really wish there would be some justice for people. These people at these banks should be in JAIL. They have refused to modify loans, illegally foreclosed on thousands of peoples homes and this is all that they offer? That stimulus money was supposed to be used by these banks, so they would start lending money for people, instead they opportunistically used it to foreclose on thousands of houses and booted these families out to the street. These people deserve justice not LIP SERVICE.
If Chase was doing it, what about the other banks? Think any of them might have done the same thing but they haven't been caught yet.
Chase has a long history of cheating customers and when caught always says that it will change. And it does change..... for the worse!
Chase is the worse bank and when they come under investigation in later years, everyone will say, "I told you so". They sure ruined my credit.
What about the regular Joe's that Chase is screwing everyday. My daughter who has been trying to work with Chase for 2 years on her mortgage to simply defer one payment so she can get even and Chase won't even talk to her but continues to charge her outrageous late fees. What they did to the military is criminal but what they are doing to other mortgage holders is equally as bad. Why doesn't NBC open up that can of worms? The abuses aren't only limited to the military..
I was going to post something, but you took the words right from my fingertips.. The only thing I want to add is that Bank of America is as crooked as Chase! They don't want to help anyone either. Greed, greed, greed. I seriously, do NOT know how they sleep at night...
In my opinion a lot of these people at Chase should go to prison. What they did in my opinion was Despicable, and rotten. No wonder bankers are a much hated bunch. Prison sentences would be very nice to see.
I am sure that someone told their manager that it was illegal to over charge the servicesmen, it happen in the Gulf War also, no excuses from these Banks. They are all paid off. Remember Liars, Cheators, and Thieves.
Bonuses, Bonuses
Oops! We got caught. Now I guess we will have to fess up. HA!
Way to go Chase! Another example of your human, warm heartfelt customer services. That's sarcasm if you don't recognize it.
It doesn't matter if they're caught, they're still gonna be crooks!
My only question to Chase. Why didn't they do this in the first place???
The last time I had an account with a bank that provided outstanding customer service was 30 years ago. It appears that within the last 10 years a bank's only goal was create OBSCENE and STUPID fees in order the feed the greed of the CEOs and other senior management. No where in their pledge with regards to these fees is there anything about improving customer service skills. NOW THIS, how could a financial institution subject anyone much individuals serving in our armed services to this kind of nonsense. I switched over to utilizing credit unions for my day to day financial accounts 25 years ago and have never regretted it That also includes credit cards!!! A bank will NEVER AGAIN make another PENNY off of me.
Exactly what are you going to do for those 18 military families you already, 'Illegally' foreclosed on aye Chase?
I read in an earlier article that Chase stated that they would get those peoples houses back. Now how are they going to do that if someone elses family lives there now? I got rid of my Chase credit card years ago because they kept messing with me on the interest rate and also "appeared" to hold my checks for several days until the pay was late. I of course called them on this and they reversed the charges the two or three times that they did this too me. They were trying to get away with charging me more fees.
Its a start, but they have a long way to go. Who knows how many service members/vets they ruined and caused serious grief to before getting caught.
All banks need to be monitored so that they don't financially rape their patrons! Unfortunately Chase is my bank and believe me I could tell you more than a few stories. They make promises but are sharks (and worse). My mortgage is with them and I am trying to get out from under them. All consumers need to beware of something most people don't know about - concerning credit cards. DON'T GET THEM and if you have them - TEAR THEM IN TWO - unless you can pay every month. Credit card companies are doing the same thing they did with mortgages and tying them into "portfolios". A receipe for disaster.
Why don't they treat all their customers fairly?
From the sound of it Sheila, the question should be; why don't the treat 'ANY' of their customers fairly?
OT, in the link to this post, the word "amends" is misspelled "ammends".
The above comment on the credit cards is so right. They take advantage of the poorest people ( those who cannot pay in full every month) with their obscene rates. I do not have a card with them, and never will, but I am helping a family member with their budget. She has not been past due or over the limit in 12 months, and 24.25% is the best they can do. Part of me wants her to honor her debts, and another part wants me to suggest bankruptcy just on the principle of their rigid stance.
The Biblical Term is Usury. It is against Gods word!
And the Republicans want to cut funding for the SEC. The guys who police Wall Street. Just shows you where their priorities lay and it's not with the average person.
I agree -- Wall Street and big banks need a degree of regulation and oversight. I'm reluctant to focus on the politics of this since the real story is the damage Chase did to our military personnel. I'm glad they're going to make things right monetarily, although they'll never be able to give these families back their peace of mind, or the time they wasted worrying or fighting an unjust foreclosure. Wish there was a way to make them compensate these families for "mental cruelty."
But I can't help but think that the next time some politician or political party says that banks don't need regulation or oversight, we should remember this situation and others where banks have messed us over. Then use your vote to make sure politicians know that "yes, banks do need regulation!" and that we expect them to protect the American public instead of cozying up to these potential campaign donors.
Too bad the writer can't spell 'amends'.
Good start, Now if they would do something for the Millions of Americans that got F------ by the banks because of the banking collapse.
Nobody believes what your spinning Chase! You think we are all dummies and treat everyone that way! You NEED TO FOLLOW UP AND DO WHAT YOU SAY! I'll hold the rest of my opinion until AND IF you correct these horrid acts you did to the very people that make it possible for you to have freedom to do business. SHAME, SHAME ON ALL THOSE INVOLVED! THE NATION IS WATCHING YOU FROM NOW ON. With the internet that is very easy and info shoots around the world now in seconds.
If the Banksters are willing to do this to our Men and Women who are fighting and dieing for our Nation when no one is looking, I can just imagine what they are doing to your average Dick and Jane working stiffs. It's way past time for these Banksters to start taking Perp walks and going to Prison. I am not talking Club Fed, I say put them in the State Penitentiaries with all the other Human Animals!
How in Gods Name have we allowed the Banks to go from the Servants of our Nation, to it's Masters?
We need our Modern day Teddy Roosevelt, (Trust Buster) to start breaking all these Banking Trusts up!
i read recently in a book about the dust bowl in oaklahoma-- that the banks actually thought that all real estate should be owned by the banks and only grant any rights of use to people on a rental basis. no politician at the time (on record) agreed with this and of course roosevelt shot it down but imagine the mind set of the banking industry at the time to even propose something that outrageous. they're rearranged a few details but maybe they have come pretty close to owning all real estate-----they owned plenty where i live.
granny22 These People, if that is what one wants to call them are not going to change until they are made examples of. Lets see who has the Patriotic moral integrity to start doing it. That person will have my vote hands down!
Don't let the Fancy Suits and handpicked manicured fast talking spokespeople fool you, a lot of them need a taste of their own Medicine 20 years ago!
stopped at chase to pay my credit card bill--now i even want a dated receipt-----bank employee came up to me while i was in line and told me to follow her--when i asked why she said i should learn to use online banking as using walk up counter service was not what they wanted me to do----when i said no i don't want to she was annoyed---talk about attitude------banking clerks are not in the customer service business.
I hate big banks and bankers.
This is a drop in the bucket as to the ways big business screws every american. I wonder if these and other servicemen will be so eager to put there LIVES on the line for this all so screwed up country of there's ?
Yes we will....you can take THAT to the bank. Our country has it's issues but in the 33 years I have been in the military I have never seen a more dedicated force. I have also never seen another country I would like to call home and I've been to quite a few, none of them on vacation.
Doing the right thing, Means, doing the right thing when no one is looking! It's high time that Leaders in Authority start Standing up to these people for people who can't stand up for themselves. These people keep returning to the Headlines and those who can do something about it are staying silent, or worse yet defending them.
Washington Mutual was bad enough and after Chase took over the practices just got worse. FYI Our men and women in uniform got a 5 dollar cost of living raise (the lowest I've seen and I've been around the military since 1996) we also took a near 50 dollar cut in the BAH. My husband is an E-5, and our area makes so far below poverty level that we qualify for food stamps without even counting our 2 kids.
Our soldiers continue to defend their country and always will. Yeah its demoralizing when we're treated like dirt, but that's part of the job of being a soldier. Or a dependant for that matter. I have only to step off our base to be reminded of this. It is utterly disgusting that a bank like Chase has been allowed to out spit on every citizen they have done this to military or civilian. They ought to be closed down. PERIOD
chase replaced washington mutual here in san diego--they proceeded to earn late fees by changing credit card due dates without notifying card holder-----result--$39.99 late fee (late by 2 days)-i have never had a late fee in 12 years with washington mutual. 24% interest was not enough for them---they refused to refund the charge and i vowed to never pay them even 1 penny interest ever again. since then i have paid in full every month-----i figure they lost about $600.00 so far since i no longer pay any interest---thanks chase---you woke me up----i miss washington mutual------
Interesting how they are always sorry after they get caught. If they would just do right by the American people all of the time then articles such as this would never make the news. What a shame and disgrace.
The donation program is not good enough, unless the freebies go specifically to those they accidentally foreclosed on. Give those people the houses. Don't make it random! Right the specific wrongs, or forever be labeled schmucks!