JPMorgan Close to $13B Mortgage Settlement

JPMorgan Chase & Co is close to reaching a $13 billion settlement with the U.S. government to settle a range of mortgage issues, people familiar with the situation told CNBC. During a late Friday call between JPMorgan Chief Executive Jamie Dimon, Attorney General Eric Holder and lawyers for both sides, the bank agreed to pay about $13 billion to settle civil cases pending with the Justice Department, the New York Attorney General, and the Federal Housing Finance Agency. The probes are over its handling of mortgage-backed securities that plummeted in value during the housing crash of the late 2000s, according to one of these people. Of that sum, about $4 billion resolves the outstanding FHFA issues and about $4 billion would be put into a consumer-relief fund, added that person. The balance would be put toward resolving the Justice and New York state matters.

Contact Us