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JPMorgan Chase Settles Mortgage Escrow Interest Class Action

May 26, 2021, 4:54 PM

JPMorgan Chase Bank NA has agreed to pay more than $11 million to settle class action claims it failed to pay interest on funds held in mortgage borrowers’ escrow accounts.

Rachel and Ariel Cymbalista had a mortgage with Chase for their single-family home. Chase maintained an escrow account containing funds related to their mortgage, enabling the bank to directly pay tax and property insurance fees.

The Cymbalistas alleged that Chase failed to pay at least 2% interest on the funds in the account as required under New York’s General Obligation Law and the terms of their mortgage agreement.

Other jurisdictions ...