JP Morgan is "delaying" foreclosures nationwide, pending a review of court documents it has submitted.  The company said this afternoon that employees may have signed documents based on reviews by others.

The issue appears to be the nearly identical to the one that caused Ally Bank, formerly known as GMAC, to cancel foreclosures last week, due to documents signed by Jeffrey Stephan, an employee who testified in a sworn deposition that he had signed approximately 10,000 documents per month, without a thorough review of the documents.  Stephan admitted that a notary was not always present when he signed.

In a similar deposition, a JP Morgan employee, Beth Cottrell, testified to engaging in similar signing activity for JP Morgan Chase.

The actions by JP Morgan Chase could affect up to 58,000 foreclosures handled by the company, according to reports.  The company says that it believes that the affected documents are factually accurate.