JPMorgan Chase Settles $45 Million Suit With Government on Fraudulent VA Loans – NMP Skip to main content

JPMorgan Chase Settles $45 Million Suit With Government on Fraudulent VA Loans

NationalMortgageProfessional.com
Mar 13, 2012

JPMorgan Chase Bank has finalized a settlement that will pay the federal government $45 million to settle a lawsuit alleging that it cheated military veterans and taxpayers out of millions of dollars by hiding illegal fees in veterans' home mortgage refinancing transactions and then seeking to collect on void government loan guarantees. The qui tam suit, brought under the False Claims Act by two whistleblowers, seeks to recover this money on behalf of the U.S. government from eight banks and mortgage companies. JPMorgan Chase Bank is the first to settle these claims. The whistleblower lawsuit was filed in 2006 in federal district court in Atlanta, Ga., by two mortgage brokers. The case is still pending against Wells Fargo Bank, Bank of America, CitiMortgage, Suntrust Mortgage, Washington Mutual Bank, PNC Bank (which acquired National City Mortgage Company), Countrywide Home Loans, Mortgage Investors Corporation, and First Tennessee Bank (which acquired First Horizon Home Loan Corporation). "We are proud to be part of an effort to return tens of millions of dollars to the government for fraud that would have otherwise gone undetected," said co-lead counsel in the case, James E. Butler Jr., of the Atlanta law firm Butler, Wooten & Fryhofer, LLP. "JPMorgan Chase is but one lender that thought it could get away with charging illegal fees to veterans and hiding these illegal charges." Butler, Wooten & Fryhofer, LLP teamed with Wilbanks & Bridges, LLP of Atlanta and Phillips & Cohen, LLP of Washington, D.C., to pursue the lawsuit on behalf of the whistleblowers and the government. The three law firms have won record verdicts and settlements and have extensive experience in whistleblower cases. "Our lawsuit alleges that these lenders committed blatant fraud," said co-lead counsel Marlan Wilbanks of Atlanta. "Although JPMorgan Chase has paid to settle its claims, we are looking forward to moving the case against the other defendant lenders. These banks should be held accountable for causing the government to pay millions of dollars on void loan guarantees."
Published
Mar 13, 2012
CFPB Seeks Insight On Creating A Fairer Mortgage Market

The Consumer Financial Protection Bureau has been actively looking to create a fairer mortgage market, free of discriminatory engagements. To do so, it issued a Request for Information to seek input on rules implementing the Home Mortgage Disclosure Act.

Regulation and Compliance
Nov 17, 2021
Regulators Renew Effort to Protect Against Foreclosures

CFPB, The Fed, FDIC and other agencies will watch for compliance with COVID-19 protections

Regulation and Compliance
Nov 10, 2021
Fed To Begin Tapering Asset Purchases by 14.3% This Month

Also sets target range for the federal funds rate at 0 to 1/4%.

Regulation and Compliance
Nov 03, 2021
CFPB Cracks Down On Discriminatory Credit Reporting For Black And Hispanic Consumers

Consumers in majority Black and Hispanic neighborhoods are far more likely to have disputes appear on their credit reports. 

Regulation and Compliance
Nov 03, 2021
CFPB Names 2 New Assistant Directors

Former Obama Administration officials will lead Supervision Policy, Enforcement divisions.

Regulation and Compliance
Oct 29, 2021
FHFA Proposes Extra Disclosure Rules For Fannie, Freddie

The proposed rule for the Enterprise Regulatory Capital Framework seeks to put Enterprises on a "level playing field" with U.S. banking requirements.

Regulation and Compliance
Oct 28, 2021