JPMorgan Chase & Co. wrongly foreclosed on 14 active-service military families and overcharged thousands more on their mortgages, a continuing internal bank review has found.
The bank said about a year ago it launched the internal audit and found it made mistakes when accounting for active military service under the Servicemembers Civil Relief Act. That 2003 law says active-duty military families' interest rates on homes can be no more than 6%, and they are not subject to the delinquency process including foreclosures.
"We made mistakes here and we are fixing them," the bank said in a statement. "Any customer mistake is regrettable. We feel particularly badly about the mistakes we made here."
The bank said it is in the process of refunding about $2 million to more than 4,000 families that were overcharged.
The bank said some refunds were only for minor fees. It added that it has worked quickly on the wrongful foreclosures, and has already handled 13 of the affected families, with discussions ongoing on the last one.
The mistakes were earlier brought to light by NBC News.