Keller Rohrback L.L.P. Announces Investigation of JPMorgan Chase Bank and Other Lenders Regarding FHA Mortgage Insurance

SEATTLE--(BUSINESS WIRE)--Attorney Advertising. Keller Rohrback L.L.P. (www.krclassaction.com) is currently investigating JPMorgan Chase Bank (NYSE:JPM), Washington Mutual (NYSE:WAMUQ), Bear Stearns Residential Mortgage (NYSE:BSC), Bank of America (NYSE:BAC), Countrywide, Citigroup (NYSE:C), and HSBC (NYSE:HBC), among others, for alleged mortgage originator abuse of the Federal Housing Administration (“FHA”) mortgage insurance offered through the Direct Endorsement Lender program. In particular, the investigation focuses on lax lender mortgage selection practices, deficient appraisal practices, and inappropriate evaluation of borrower income by lenders to make mortgages qualify for the government’s FHA guarantee. These abusive practices allowed lenders to obtain FHA mortgage insurance, thereby making the mortgages marketable in the secondary mortgage market. When these borrowers defaulted, the FHA was forced to pay millions of dollars in insurance claims inappropriately. The U.S. Attorney for the Southern District of New York filed suit on May 3, 2011, against Deutsche Bank AG and MortgageIT, Inc. for similar practices.