{"id":1395,"date":"2014-02-08T17:14:06","date_gmt":"2014-02-08T17:14:06","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2014\/02\/pmorgan_will_pay_614m_to_us_go"},"modified":"2022-09-19T10:13:50","modified_gmt":"2022-09-19T15:13:50","slug":"pmorgan-will-pay-614m-to-us-go","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/pmorgan-will-pay-614m-to-us-go\/","title":{"rendered":"JPMorgan Will Pay $614M to US Government Over Mortgage Fraud Lawsuit"},"content":{"rendered":"

\t\t\t\tJPMorgan Chase & Co. (JPM) <\/a>has agreed to settle securities allegations that it defrauded federal agencies by underwriting mortgage loans that were sub-standard. As part of the agreement with the US government, the bank acknowledged that for over 10 years it approved thousands of insured loans that were ineligible for insurance by the Department of Veterans Affairs of the Federal Housing Administration. The Justice Department claims that as a result of JPMorgan’s actions, both the VA and FHA sustained significant losses because loans that were not qualified failed.<\/p>\n

The mortgage fraud lawsuit<\/a> is over the financial firm’s involvement in US programs that let private-sector lenders approve mortgages for government refinancing or insurances. According to prosecutors, JPMorgan violated the rules on a routine basis when it approved loans that did not meet the program’s criteria. One example, noted by Bloomberg.com, is the bank’s decision to underwrite a loan for an Indiana property and approving it for FHA insurance even though the rules don’t allow for reliance on documents that are over 120 days old to verify the assets of the borrower. After just three payments, the borrower defaulted. Because JPMorgan was the note’s holder, the Department of Housing and Urban Development paid a $109,253 insurance claim.<\/p>\n

The Justice Department says that as part of the securities settlement the bank has also admitted that it did not let agencies know that its own internal reviews uncovered over 500 defective loans that should not have been turned in for VA and FHA insurance. According to United States attorney in Manhattan Preet Bharara, JPMorgan put “profits ahead of responsibility.”<\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

JPMorgan Chase & Co. (JPM) has agreed to settle securities allegations that it defrauded federal agencies by underwriting mortgage loans that were sub-standard. As part of the agreement with the US government, the bank acknowledged that for over 10 years it approved thousands of insured loans that were ineligible for insurance by the Department of […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3752,3797,3753],"tags":[],"class_list":["post-1395","post","type-post","status-publish","format-standard","hentry","category-financial-firms","category-j-p-morgan-chase","category-mortgage-backed-securities"],"yoast_head":"\nJPMorgan Will Pay $614M to US Government Over Mortgage Fraud Lawsuit — Investor Lawyers Blog — February 8, 2014<\/title>\n<meta name=\"description\" content=\"JPMorgan Chase & Co. 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