JPMorgan settles mortgage claims
NEW YORK: JPMorgan Chase & Co agreed to pay US$5.1 billion (RM16 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 US$13 billion accord the firm is negotiating with the government.
The deal includes US$4 billion to end the FHFA's 2011 suit accusing JPMorgan of selling Fannie Mae and Freddie Mac faulty mortgage bonds, the agency said on Friday.
The remaining US$1.1 billion settles claims that the firm sold the companies defective loans that they packaged into their own securities.
JPMorgan chief executive officer Jamie Dimon, 57, is seeking to settle state and federal probes into whether the company misrepresented the quality of mortgage bonds packaged and sold at the height of the United States housing boom.
JPMorgan, the biggest US bank, didn't admit wrongdoing in the FHFA deal. Bloomberg