Reuters-
A whistleblower will be paid $63.9 million for providing tips that led to JPMorgan Chase & Co’s agreement to pay $614 million and tighten oversight to resolve charges that it defrauded the government into insuring flawed home loans.
The payment to the whistleblower, Keith Edwards, was disclosed on Friday in a filing with the U.S. district court in Manhattan that formally ended the case.
In the February 4 settlement, JPMorgan admitted that for more than a decade it submitted thousands of mortgages for insurance by the Federal Housing Administration or the Department of Veterans Affairs that did not qualify for government guarantees.
[REUTERS]
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It was not the beginning infraction (bad underwriting & falsifying documents) that cause the US Government the loses, but it was the forgeries that enabled the foreclosures to take place and the FHA & VA purchase these properties (theft by deception). Next JPMorgan submitted fraudulent claim (False Claim) and received those fraudulent funds.
So yes the beginning of the loans in obtaining FHA insurance with falsifying document was and infraction but the VA loan obtain insurance with a upfront fee and that information comes from the VA with a certificate and the VA applicant’s disability status. However as long as the loan payment was paid which it had to be to have no break in insurance coverage, then there was still not harm to the Federal Government.
The harm can when JPMorgan allowed the court to think that they were the “lien holder” and allowed a foreclosure while Ginnie Mae still to this day holds the blank Notes, which it impossible for Ginnie Mae to transfer the blank Notes as they cannot re-endorse the Note because it Ginnie Mae was never named as the one to receive the endorsement as they did not purchase the debt.
It not the jump that kills you but it the sudden stop. The sudden stop in this case was filing that claim of the staged car wreck!
http://www.blogtalkradio.com/neilgarfield/2014/01/30/neil-garfield-show-on-foreclosure-defense
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