JPM's Dimon says bank will pay for foreclosure errors

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(Bloomberg) - J.P. Morgan Chase & Co., the second-biggest U.S. bank by assets, will pay for errors it made in processing the foreclosure paperwork on defaulted home loans, Chief Executive Jamie Dimon said.

“Some of the mistakes were egregious, and they're embarrassing,” Mr. Dimon, 55, said Tuesday at a conference hosted by the Council of Institutional Investors in Washington. He said the bank faces extra legal and regulatory hurdles after a Florida lawsuit uncovered that bank officials had signed foreclosure affidavits without verifying their accuracy.

The Office of the Comptroller of the Currency, Federal Reserve and Office of Thrift Supervision are nearing an agreement with 14 U.S. mortgage servicers, including New York-based J.P. Morgan, Bank of America Corp. and Wells Fargo & Co., The Wall Street Journal reported Tuesday. Mr. Dimon didn't elaborate on the negotiations with federal regulators or with state attorneys general.

“We made a mistake, they were signing it based upon what they were told, not based upon checking the note file, checking the loan file,” Mr. Dimon said. “But the actual information in the affidavit was 99.5% accurate. We're not foreclosing on people who we shouldn't foreclose on. But we made a mistake, and we're going to pay for that mistake.”