JPMorgan settles mortgage suit

Financial institution reaches $45 million agreement with the government

JPMorgan Chase & Co. has reached a $45 million agreement with the federal government to settle claims the financial giant charged veterans hidden fees in mortgage refinancing transactions.

The case dates back to 2006 when two mortgage brokers blew the whistle on JPMorgan practices. The suit sought payment from eight banks and mortgage companies on behalf of the U.S. government, according to Thomson Reuters. The $45 million payment is part of the larger national settlement over the foreclosure abuses in which JPMorgan and four other banks were involved.

The whistleblowers will share 26 percent of the settlement amount. The case is still pending against the remaining banks, which include Bank of America Corp., Wells Fargo & Co. and Citigroup Inc.

 

Contributing Author

Cathleen Flahardy

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