JPMorgan Expands Review of Foreclosure Documents to 41 States
Oct 13th 2010 8:00PM
Updated Oct 13th 2010 8:07PM
In response to accusations of document fraud, JPMorgan Chase (JPM) said Wednesday it's expanding its foreclosure review to some 115,000 cases. The review, which involves homeowners in 41 states, previously involved about 56,000 cases, according to an Associated Press article.
In an earnings presentation Wednesday, JPMorgan said the review would delay foreclosures in those states. It has also stopped using an industry-standard electronic mortgage tracking system called MERS (Mortgage Electronic Tracking System) commonly used to process foreclosures and is working to put new foreclosure processes in place, the company said.
The investment bank joins a growing list of financial institutions taking a closer look at foreclosure documentation in recent weeks. GMAC Mortgage said Tuesday that it would review its foreclosure procedures in all 50 states, broadening an initial review that began about two months ago. And earlier this month, Bank of America (BAC) said it would delay foreclosures on properties in 23 U.S. states to review whether its employees signed off on foreclosure documents without reading them.
Officials in 50 states have launched a joint investigation into allegations that mortgage companies mishandled documents and broke laws while foreclosing on hundreds of thousands of homes, the Associated Press reported Wednesday.
Also on Wednesday, JPMorgan reported that its second-quarter earnings grew 23%, year over year, as lower provisions for loan losses more than offset declines in its investment banking and other businesses.