UNITED STATES BANKRUPTCY COURT
FOR THE EASTERN DISTRICT OF MICHIGAN
NORTHERN DIVISION-BAY CITY

Case No. 10-23963-dob Chapter 13

In re:

DAVID S. BELZAK, LYNDA J. BELZAK,
Debtors.

Hon. Daniel S. Opperman

ORDER APPROVING SETTLEMENT BETWEEN THE UNITED STATES TRUSTEE PROGRAM AND JPMORGAN CHASE BANK. N.A.
RECITALS

Whereas, on October 26, 2010, David S. Belzak and Lynda J. Belzak (the “Belzaks”) filed a chapter 13 Bankruptcy Petition in the United States Bankruptcy Court for the Eastern District of Michigan, captioned In re David S. Belzak and Lynda J. Belzak, Case No. 10-23963 (the “Belzaks’ Case”).

Whereas, on January 19, 2011, JPMorgan Chase Bank, N.A. (“Chase”) filed a Proof of Claim in the Belzaks’ Case asserting a secured claim arising out of a Home Equity Line of Credit Agreement dated September 7, 1999, executed by the Belzaks (the “Loan”). (Claims Register for Case No. 10-23963, Claim 15).

Whereas, on July 30, 2013, pursuant to Bankruptcy Rule 3002.1, Chase filed a payment
change notice (“PCN”) for the Loan. (Dkt. No. 57).

Whereas, on August 7, 2013, the Belzaks objected to the PCN, and the Court sustained the objection by Order entered on September 4, 2013. (Dkt. Nos. 59 & 63).

Whereas, on November 8, 2013, the United States Trustee for Region 9 (the “United States Trustee”) filed an ex-parte motion requesting, among other things, that the Court enter an order requiring Chase to appear for an examination under Bankruptcy Rule 2004 and to produce certain documents (the “2004 Motion”). (Dkt. No. 71).

Whereas, on November 8, 2013, the Court entered an Order granting the 2004 Motion. (Dkt. No. 72).

Whereas, on November 25, 2013, Chase filed a motion for protective order seeking to modify the discovery ordered by the Court. (Dkt. No. 82).

Whereas, thereafter Chase engaged the United States Trustee in discussions to resolve the discovery disputes, and on January 10, 2014, the Court entered an Order Staying all UST-Related Proceedings. (Dkt. No. 101).

Whereas, Chase engaged K&L Gates LLP to conduct a review of its policies and practices related to PCNs and escrow matters as described further below.

Whereas, Chase has since engaged the Executive Office for United States Trustees (the
“EOUST”) in discussions concerning its policies and practices relating to PCNs and the
administration of escrow accounts for residential mortgage loans in chapter 13 bankruptcy cases as described below.

Whereas, as a result of their discussions, the Parties have reached an agreement as set forth in this Order Approving Settlement Between the United States Trustee Program and JPMorgan Chase Bank, N.A.

Whereas, in consideration of the foregoing, and of the mutual promises and compromises between them, the EOUST and the United States Trustees and Acting United States Trustees for Regions 1 through 21 (collectively “the United States Trustee Program” or “USTP”), and Chase (Chase and USTP are collectively referred to here as the “Parties”) do hereby agree, stipulate and consent to the Court’s entry of this Order Approving Settlement Between the United States Trustee Program and J.P. Morgan Chase Bank, N.A. (this “Order”), and the Court otherwise being fully advised of the premises. Accordingly,

IT IS ORDERED AS FOLLOWS:

image: Reuters

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