JPMorgan to Pay $614 Million to Settle False Claims Suit
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JPMorgan Chase & Co. will pay $614 million to settle claims it improperly approved Federal Housing Administration and Veterans Affairs loans that weren’t eligible for insurance from those agencies because they didn’t meet underwriting requirements.
JPMorgan acknowledged in the agreement that it violated the False Claims Act and failed to inform the agencies when its own internal reviews discovered more than 500 defective loans that shouldn’t have been submitted for FHA and VA insurance, the Justice Department said today in a statement.