JPMorgan Chase has agreed to pay $614 million to resolve allegations that the bank fraudulently approved and underwrote FHA- and VA-backed mortgage loans that failed to meet the standards of those agencies. Many of the defective loans have since defaulted or are at risk for default, leaving taxpayers to foot the bill.

In an unusual turn for such cases, JPMorgan Chase admitted to approving defective loans and to failing to inform the FHA and VA when internal reviews revealed hundreds of defective loans.

The case was initiated by Keith Edwards, a former assistant vice president at JPMorgan, in January 2013. Mr. Edwards will receive $64 million as an award for his efforts.

Read the entire press release, “JPMorgan Chase to Pay $614 Million for Submitting False Claims for FHA-insured and VA-guaranteed Mortgage Loans”
Read the entire article, “J.P. Morgan Whistleblower Gets $64 Million”