Skip to main content

JPMorgan Suspends Foreclosures: Report

JPMorgan is reportedly suspending more than 50,000 foreclosures in order to take a closer look at their documentation.

NEW YORK (

TheStreet

) --

JPMorgan Chase

(JPM) - Get JPMorgan Chase & Co. Report

is reportedly suspending more than 50,000 foreclosures in order to take a closer look at their documentation.

The

Associated Press

said that the company has acknowledged its employees "signed some affadavits about loan documents without personally verifying the files," and said the bank has asked judges to hold off on entering judgments on the foreclosures in question until its review is complete.

The

New York Times

TheStreet Recommends

said 56,000 mortgages were involved

, and that all of the mortgages in question were in states that require court approval of foreclosures, specifically citing New York, New Jersey, Connecticut, Florida and Illinois.

JPMorgan shares closed Wednesday at $38.41, down 1.4%. Year-to-date, the stock is off 6.5%. A JPMorgan spokesperson wasn't immediately available for comment on the reports.

The bank's move follows a similar action taken by GMAC Mortgage last week, which also suspended certain foreclosures to review their documentation amid questions about whether the cases were being processed properly.

--

Written by Michael Baron in New York.

>To contact the writer of this article, click here:

Michael Baron

.

>To submit a news tip, send an email to:

tips@thestreet.com

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.