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JPMorgan to Pay $614M Over False Claims

""JPMorgan Chase"":http://www.jpmorganchase.com/ announced this week a settlement with the government, putting to bed yet another complaint in a long line of legal issues plaguing the megabank.

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The ""Justice Department"":http://www.justice.gov/ and JPMorgan both announced Tuesday that the bank will pay $614 million in restitution for violations of the False Claims Act. The government claims that starting as early as 2002, the firm knowingly originated and underwrote non-compliant loans submitted [COLUMN_BREAK]

for insurance coverage and guarantees by the Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA).

As a consequence, the DoJ says FHA and VA ""incurred substantial losses when unqualified loans failed and caused [the agencies] to cover the associated losses.""

""This settlement recovers wrongfully claimed funds for vital government programs that give millions of Americans the opportunity to own a home and sends a clear message that we will take appropriately aggressive action against financial institutions that knowingly engage in improper mortgage lending practices,"" said Associate Attorney General Tony West.

As part of the settlement, JPMorgan also agreed to enhance its quality control program for future loans submitted to FHA's Direct Endorsement Lender program.

In a statement, JPMorgan said, ""The settlement represents another significant step in the Firm's efforts to put historical mortgage-related issues behind it.""

The bank added that it is fully reserved for the settlement.

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