JPMorgan under federal investigation

NEW YORK – The U.S. Justice Department is investigating JPMorgan Chase over mortgage-backed investments the bank sold in the run-up to the financial crisis.

The New York-based bank said in a regulatory filing that it is responding to investigations by the civil and criminal divisions of the U.S. Attorney’s Office for the Eastern District of California. In May, the civil division informed JPMorgan that it had “preliminarily concluded” that the bank had violated federal securities laws in connection with certain mortgage-backed investments it sold from 2005 to 2007.

A JPMorgan spokeswoman declined to comment.

JPMorgan didn’t give details on what the Justice Department is investigating. But previous lawsuits and investigations, against both JPMorgan and other big banks, have said the banks misled investors about the quality of the loans they were buying. When the real estate bubble burst, many of the mortgage-backed securities soured and the investors who bought them lost billions.

If the investigations result in criminal or civil action by the Justice Department against JPMorgan, it would be the most high-profile government move against the bank to date.

Fixed 30-year rates edges up to 4.40

WASHINGTON – Average U.S. rates on fixed mortgages barely changed this week, giving prospective homebuyers time to lock in relatively low rates.

Mortgage buyer Freddie Mac said Thursday that the average on the 30-year loan edged up to 4.40 percent from 4.39 percent last week. The rate is a full percentage point higher than in early May, when rates neared record lows. But rates remain low by historical standards.

The average on the 15-year fixed loan was unchanged at 3.43 percent.