Chase, as one of the nation’s largest holders of FHA-insured home loans, has collected millions of dollars in post-payment interest. The National Association of Realtors (“NAR”), estimates that “more than 40 percent of FHA borrowers close during the first 10 days of the month, exposing them to at least 20 days of interest payments after the termination of the mortgage.”
If you took out an FHA mortgage between August 2, 1985 and January 21, 2015, and paid off or refinanced your loan, you may have paid post-payment interest and may be entitled to recoup your losses.
When a customer wants to pay off their loan, either because they sold their house and bought a new house, they want to pay off the mortgage early, or they want to refinance the loan with another company, the customer typically requests a “payoff statement.” According to HUD regulations (the law), the payoff statement must tell the customer that they can pay off the loan on the first day of the month and not pay any interest for that month. It also must disclose that if the customer is paying off the loan on any day other than the first of the month, they may have to pay interest for the entire month, even though they paid it off before the end of the month. Third, the payoff statement must disclose how the post-payment interest is calculated.
Chase uses a standardized form for all customers who request a payoff statement. And Chase does not provide any of these disclosures in that form. A recently initiated lawsuit says that Chase’s failure to provide the disclosures, and specifically in the form mandated by HUD regulations, is a breach of the contract the customer and Chase entered into (the promissory note). In addition to not providing the disclosures, Chase is collecting interest for the entire month for any payment made on a day other than the first of the month. If you want to investigate your entitlement to damages against Chase or any other bank for such interest payments, contact us at 303-840-2222 or 866-987-4368 (toll free), or complete the confidential case inquiry form on the margin of this page.