January 5, 2016 / 6:51 PM / 4 years ago

UPDATE 1-JPMorgan fined $48 mln for failures in U.S. robo-signing settlement

(Adds details, background)

WASHINGTON, Jan 5 (Reuters) - JPMorgan Chase has been fined $48 million for failing to meet terms of a settlement to resolve mortgage servicing violations, U.S. bank regulators said on Tuesday.

The fine will be on top of $2 billion that JPMorgan had been ordered to pay to cover remediation costs and foreclosure assistance to borrowers, the Office of the Comptroller of the Currency said.

JPMorgan was among a number of banks that participated in a 2013 nationwide settlement with regulators over the practice of robo-signing, where banks pursued faulty foreclosures by using defective or fraudulent documents.

The OCC also said on Tuesday that EverBank will pay a $1 million fine for similar violations connected to the mortgage servicing case.

The regulator said it was ending business restrictions it placed on both banks last June, as well.

According to JPMorgan, that means the OCC will no longer have to approve the bank’s purchases of mortgage-servicing rights portfolios or sign off on promotions within its mortgage-servicing rights division.

“Doing what’s right for our customers has always been our top priority,” JPMorgan said in a statement. “Our mortgage employees have worked very hard over the last several years to make changes that will further enhance the customer experience and we’re pleased by the outcome of the OCC’s assessment of our work.”

The OCC said that between Dec. 1, 2011, and Nov. 19, 2013, JPMorgan made filings in bankruptcy courts “with respect to payment change notices that did not comply with bankruptcy rules and constituted unsafe or unsound banking practices.”

That included approximately 4,380 notices using the signature of an individual who no longer worked at the bank at the time the notices were filed, according to the order. The bank did not admit or deny its finding.

EverBank, meanwhile, improperly charged fees to 47,833 borrowers between January 2011 and March 2015, and has begun paying remediation of approximately $1.64 million to the borrowers, according to the order. (Reporting by Sarah N. Lynch and Lisa Lambert; additional reporting by Joy Wiltermuth; Editing by Tom Brown)

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