Daily News: October 28, 2013

JPMorgan Chase to Pay $5.1 Billion to Settle Mortgage Claims

JPMorgan Chase reached an agreement to resolve all of its mortgage-backed securities litigation with the Federal Housing Finance Agency as conservator for Freddie Mac and Fannie Mae for $4 billion. This settlement resolves the firm’s largest mortgage-backed securities case and relates to approximately $33.8 billion of securities purchased by Fannie Mae and Freddie Mac from J.P. Morgan, Bear Stearns and Washington Mutual.

The firm has also simultaneously agreed to resolve Fannie Mae’s and Freddie Mac’s repurchase claims associated with whole loan purchases from 2000 to 2008, for $1.1 billion.

Today’s settlements totaling $5.1 billion are an important step towards a broader resolution of the firm’s mortgage-backed securities-related matters with governmental entities.

Previously on abfjournal: WSJ: JPMorgan in Tentative $4B Deal to Settle Mortgage Claims, October 21, 2013