McClellan Settlement
www.McClellanSettlementInfo.com



Welcome to the McClellan Settlement Website

Overview

Final Approval has been granted in a Settlement of a class action against JPMorgan Chase Bank, N.A., for itself and as successor by merger to Chase Home Finance, LLC and Chase Home Finance, Inc. (collectively “Chase”).

Plaintiffs brought a lawsuit on behalf of themselves and a class of similarly situated California residential borrowers, whom Plaintiffs allege were required by Chase to pay seller contributions to receive Chase’s approval for a short sale of property in California. Per the terms of the Settlement, Chase will reimburse California borrowers with a Chase home loan or home equity line of credit who participated in a short sale of property in California on or after July 15, 2011 and who allegedly were required to pay money above and beyond the proceeds of that short sale to obtain Chase’s written consent. Chase expressly denies Plaintiffs’ allegations and all charges of wrongdoing and liability. There has been no Court decision on the merits of this case and no finding that Chase or any other party committed any wrongdoing. There has been no resolution of any of the factual or legal allegations made against Chase.

Who Is Included in the Settlement Class?

The Settlement Class includes all individuals identified on the agreed upon Settlement Class List, which reflects each California resident who, on or after July 15, 2011:

  • was the borrower on a home loan or home equity line of credit (either owned or serviced by Chase) that was secured by a mortgage or deed of trust on property located within the State of California;
  • entered into and completed a short sale of the property with Chase’s consent; and
  • allegedly was required to make a payment to Chase in some amount over and above the proceeds received from a short sale, in order to obtain written consent for the short sale.

Excluded from the Settlement Class are any: (i) individuals who are or were during the Class Period officers or directors of the Defendants or any of their respective affiliates; (ii) any justice, judge, or magistrate judge of the United States or any State, their spouses, and persons within the third degree of relationship to either of them, or the spouses of such persons; (iii) all borrowers whose home loan or home equity line of credit was owned by a government-sponsored enterprise at the time of the short sale; and (iv) all borrowers who file a timely and proper request to be excluded from the Settlement Class in accordance with Section 10 of the Settlement Agreement.

The “Class Period” for the Settlement is July 15, 2011 through March 30, 2015.

What are the Terms of the Settlement?

Per the terms of the Settlement, each Settlement Class Member who does not opt out will receive a Settlement Payment in the full amount of what the Settlement Class Member allegedly was required to pay to Chase above and beyond the proceeds of a short sale of property in California, in order for Chase to approve that short sale. Please see the Class Notice for additional detail.

What Are Your Other Options?

The deadline to contest the amount of your Settlement Payment was June 15, 2015. The deadline to opt-out of the Settlement, object to the Settlement, or submit a request to speak at the Fairness Hearing was July 20, 2015. Please see the Class Notice for additional detail.

Final Approval Hearing

The United States District Court for the Central District of California, Eastern Division, held a Final Approval Hearing on August 31, 2015 and granted Final Approval of the McClellan Settlement. You can review the Final Approval Order and Judgment on this website on the Court Documents page. The Settlement is now effective.

This website will be updated as additional information becomes available. Please check back periodically for important updates regarding the Settlement.