JPMorgan to Pay $5.1 Billion to Settle Mortgage Claims
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JPMorgan Chase & Co. agreed to pay $5.1 billion to settle Federal Housing Finance Agency claims related to home loans and mortgage-backed securities the company sold to Fannie Mae and Freddie Mac, resolving part of a $13 billion accord the firm is negotiating with the government.
The deal includes $4 billion to end the FHFA’s 2011 lawsuit accusing JPMorgan of selling Fannie Mae and Freddie Mac faulty mortgage bonds, the agency said yesterday. The remaining $1.1 billion settles claims that the firm sold the companies defective loans that they packaged into their own securities.