Chase has provided more than $2.2 billion of the $4 billion it owes in consumer relief credit, according to the monitor of JPMorgan Chase’s settlement.
Joseph A. Smith Jr., the monitor for the settlement, found that Chase had supplied this relief credit to nearly 112,000 consumers through the end of September 2014. The bank must fulfill all $4 billion worth of credit by the end of 2017.
“In addition to its consumer relief requirements, I have no reason to believe that Chase has failed to comply with any of the policy-based, non-creditable requirements of the Settlement,” Smith said in an April 2 announcement tied with the release of his annual monitor report.
The report added that Chase claimed additional relief that has yet to be validated following the Sept. 30 deadline. Chase said it provided $5.1 billion in principal forgiveness and forbearance, rate reduction and low-to-moderate or disaster area lending in the fourth quarter, according to Smith’s report.
Chase also argued that more than 150,000 borrowers had received some form of relief including nearly $2 billion in principal forgiveness or forbearance, $1.1 billion in rate reduction and $15.8 trillion in eligible lending.
The settlement, formed in 2013 among the federal government, five states and JPMorgan Chase, requires Chase to provide consumer relief as a form of redress for the bad residential mortgage-backed securities it sold to investors prior to the financial crisis. In addition to the $4 billion in consumer relief, the bank also has to make $9 billion in direct payments to federal agencies and the five states.