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JPMorgan to pay $18.3 million to settle mortgage lawsuit


By Nate Raymond

Tue Sep 3, 2013 6:41pm EDT

(Reuters) - JPMorgan Chase & Co (JPM.N) has agreed to pay $18.3 million to settle claims that documents for mortgages acquired by a unit of Bear Stearns Cos failed to disclose material information about interest rates.

The settlement, disclosed in court papers filed on Friday in U.S. District Court in Los Angles, is one of several class actions JPMorgan has agreed to resolve related to option adjustable rate mortgages.

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.