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JPMorgan Settles Mortgage Lawsuit for $45 Million

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JPMorgan is settling a whistleblower lawsuit filed in 2006 by two mortgage brokers on behalf of the federal government that alleged eight banks and mortgage companies charged veterans fees that were hidden in mortgage refinancing, and tried to collect on void government loan guarantees. JPMorgan is the first bank to reach a settlement, and will pay the government $45 million as its part of the agreement.

The two whistleblowers will receive nearly 26 percent of the settlement, which is part of a national settlement regarding foreclosure abuses, and part of the payment in deals reached with JPMorgan and four other banks. The banks will also pay $182 million in four other whistleblower lawsuits, the Chicago Tribune reported.

The papers also reports that American Banker published on its website that JPMorgan stopped bringing lawsuits against delinquent credit card customers last year while under investigation for faulty records keeping.

The whistleblower lawsuit is still pending against the other mortgage companies and banks, including SunTrust Mortgage, Wells Faro, Bank of American Corp, and Citigroup Inc.

 

breakinglawsuitnews.com disclaimer: This article: JPMorgan Settles Mortgage Lawsuit for $45 Million was posted on Friday, March 16th, 2012 at 8:23 pm at breakinglawsuitnews.com and is filed under Fraud Lawsuits.

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