Former J.P. Morgan employee Keith Edwards alleged the mega-bank
falsely certified FHA and Veterans Affairs-backed mortgages dating back to at
least 2002, resulting in "substantial losses" for the federal agencies. Edwards worked for J.P. Morgan (and/or
predecessors) from 2003-08 and sued the bank under the False Claims Act in
January 2013 for the suspected malfeasance; the U.S. government later joined
him in the litigation. The U.S. Dept. of
Justice obtained roughly $3.8B in False Claims Act settlements and judgments in
2013 alone.
As part of the negotiated resolution, the bank promised to enhance mortgage underwriting quality control when involving a loan with the FHA direct endorsement lender program. The bank maintained that expected financial consequences for future False Claims liability in connection with the FHA and VA loan programs are expected to be insignificant.
More Reuters coverage is available here.
As part of the negotiated resolution, the bank promised to enhance mortgage underwriting quality control when involving a loan with the FHA direct endorsement lender program. The bank maintained that expected financial consequences for future False Claims liability in connection with the FHA and VA loan programs are expected to be insignificant.
More Reuters coverage is available here.
