Sort and wash beans, and place in a Dutch oven. Cover with water to 2 inches above beans. Bring to a boil; cook 2 minutes. Remove from heat; cover and let stand 1 hour. Drain beans; set aside. Wipe pan with a paper towel.
Heat oil in pan over medium heat. Add onion, ham, jalapeño pepper, and garlic; sauté 7 minutes or until onion is tender. Add beans, water, salt, and pepper; bring to a boil. Partially cover, reduce heat, and simmer 1 hour.
Place 2 cups of bean mixture in a blender or food processor, and process until smooth. Return puree to pan; stir in parsley.