JPMorgan admits to submitting phony mortgage claims

New York /
Feb.February 05, 2014 04:50 PM

JPMorgan Chase agreed to pay $614 million in fines after confessing to wrongfully filing Federal Housing Administration and Department of Veterans Affairs mortgages, the bank announced today.

The bank was in violation of the False Claims Act, in that it purposely originated and underwrote non-compliant loans that received insurance coverage. When internal reviews found more than 500 defective loans that were not supposed to be qualified to be submitted for insurance, the bank also did not notify the FHFA.

A lawsuit filed in August by Florida-based attorney and fraud expert Lynn Szymoniak alleged widespread creation and use of fraudulent mortgage documents, which reduced the value of mortgage backed securities purchased by the city and state. Other banks cited in the suit were Chase Home Finance, Ally Financial, CitiMortgage, Wells Fargo Home Mortgage and Bank of America Mortgage Securities, as previously reported. [Housing Wire]Mark Maurer


Related Articles

arrow_forward_ios
JP Morgan Chase CEO Jamie Dimon (Getty Images, iStock)
JPMorgan Chase adds to mortgage industry layoffs
JPMorgan Chase adds to mortgage industry layoffs
JPMC CEO Jamie Diamon and rendering of new Park Avenue HQ (DBOX / Foster + Partners, Getty Images, Illustration by Kevin Cifuentes for The Real Deal)
JPMorgan Chase reveals HQ plans after nod to remote work
JPMorgan Chase reveals HQ plans after nod to remote work
JPMorgan Chase CEO Jamie Dimon and a rendering of 270 Park Avenue (Getty, ATCHAIN)
Jamie Dimon to work-from-homers: You win
Jamie Dimon to work-from-homers: You win
National work-at-home experiment finds many unwilling to return to offices
National work-at-home experiment finds many unwilling to return to offices
National work-at-home experiment finds many unwilling to return to offices
From left: Jamie Dimon, chief executive officer, JPMorgan Chase and Don Peebles, chief executive officer, The Peebles Corporation (Getty Images, KPFF Consulting Engineers/Illustration by Steven Dilakian for The Real Deal)
Peebles, El Ad land $229M refi at Tribeca Clock Tower Building
Peebles, El Ad land $229M refi at Tribeca Clock Tower Building
Top banks keeping NYC employees home from Wall Street amid Covid surge
Wall Street banks keeping NYC employees home as Covid surges
Wall Street banks keeping NYC employees home as Covid surges
Dov Hertz lands $442M loan for Sunset Park warehouse project
Dov Hertz lands $442M loan for Sunset Park warehouse project
Dov Hertz lands $442M loan for Sunset Park warehouse project
Bet against retail costs investor big-time
Bet against retail costs investor big-time
Bet against retail costs investor big-time
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...