Tuesday, March 13, 2012

JPMorgan Chase settles military veterans mortgage lawsuit for $45M

JPMorgan Chase ($41.30 0.76) agreed to pay the federal government $45 million to settle a lawsuit accusing big banks of charging military veterans excessive fees on government-backed loans, attorneys for the plaintiffs said Tuesday.

Two whistleblowers filed the original case against Wells Fargo Bank ($31.90 0.3852), Bank of America ($8.14 0.1499), CitiMortgage ($35.36 1.07), Suntrust Mortgage ($22.20 0.32), Washington Mutual Bank, PNC Bank, Countrywide Home Loans, Mortgage Investors Corp. and First Tennessee Bank.

JPMorgan Chase declined to comment, but said the settlement stipulates the agreement is not an admission of wrongdoing on the bank's part. The law firm of Butler, Wooten & Fryhofer represented the plaintiffs in the case and confirmed the settlement Tuesday.

To date, JPMorgan Chase is the only lender to settle.


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