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February 5, 2014updated 04 Apr 2017 2:31pm

JPMorgan to pay $614 million in US mortgage fraud case

JP Morgan Chase & Co. has reached a settlement with the United States Attorney's Office for the Southern District of New York, the Federal Housing Administration (FHA), the United States Department of Housing and Urban Development (HUD) and the United States Department of Veterans Affairs (VA) resolving claims relating to the Firm's participation in federal mortgage insurance programs overseen by FHA, HUD and VA.

By Verdict Staff

JPMorgan Chase & Co. has reached a settlement with the United States Attorney’s Office for the Southern District of New York, the Federal Housing Administration (FHA), the United States Department of Housing and Urban Development (HUD) and the United States Department of Veterans Affairs (VA) resolving claims relating to the Firm’s participation in federal mortgage insurance programs overseen by FHA, HUD and VA.

The settlement represents another significant step in the Firm’s efforts to put historical mortgage-related issues behind it. Under the settlement, JPMorgan Chase will pay US$614 million in cash and agree to enhance its quality control program for loans that are submitted in the future to FHA’s Direct Endorsement Lender program.

This settlement also releases the Firm from False Claims Act, FIRREA and other civil and administrative liability for FHA and VA insurance claims that have been paid to JPMorgan Chase since 2002 through the date of the settlement. The company believes it is fully reserved for the settlement, and any financial impact related to exposure on future claims is not expected to be significant.

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