JPMorgan pays $18.3 million to settle mortgage lawsuit
According to Reuters, JPMorgan Chase (JPM) agreed to pay $18.3 million to settle a suit over mortgage disclosures. The plaintiffs alleged that mortgages acquired by a unit of Bear Stearns failed to disclose material information about interest rates.
The lawsuit alleged the mortgage documents misleadingly failed to disclose that the loan's principal balance would increase if a borrower made the minimum monthly payment.
"I'm happy with the settlement, and I think given the risk to reward, people are going to be pleased," said Jeffrey Berns, a lawyer for the plaintiffs at Berns Weiss.