Mortgage payouts slice banks’ bottom lines in Q4

New York /
Jan.January 20, 2014 02:50 PM

The fourth quarter of 2013 was a rough one for many of the country’s biggest banks, thanks to lingering litigation, the payouts for which took a bite out of the bottom line.

To be sure, some felt the bite more than others. Bank of America completed the fourth quarter of 2013 with a record net income of $3.4 billion, but also picked up the gold medal for paying the most in mortgage-related litigation expenses, according to HousingWire. Legal payouts hit $2.3 billion in the fourth quarter, up from $916 million in the same quarter of 2012.

Morgan Stanely came in second, with $1.2 billion set aside in “legal reserves for mortgage-related matters,” and JP Morgan had $1.1 billion in legal expenses, a chunk of which went to closing up the firm’s involvement with the Bernard Madoff Ponzi scheme settlement.

Goldman Sachs rounded out the top four, setting aside $561 million to deal with the mortgage kerfuffle, up a whopping 155 percent from the $260 million the investment bank put towards such legal matters in the fourth quarter of 2012. [HousingWire]Julie Strickland


Related Articles

arrow_forward_ios
Mortgage requests, refinancings continue to drop
Mortgage requests, refinancings continue to drop
Mortgage requests, refinancings continue to drop
1440 Broadway and One Park Avenue (Google Maps, Vornado)
These were the largest Manhattan real estate loans in March
These were the largest Manhattan real estate loans in March
Better CEO Vishal Garg and SoftBank CEO Masayoshi Son (Better.com, Getty)
Better.com lands $500M investment from SoftBank
Better.com lands $500M investment from SoftBank
An index tracking applications for mortgages to purchase homes decreased 5 percent. (iStock)
Frenzy ending? Mortgage requests fall 5%
Frenzy ending? Mortgage requests fall 5%
(iStock/Illustration by Kevin Rebong for The Real Deal)
March madness: Homes sold faster than ever last month
March madness: Homes sold faster than ever last month
February were 10.4 percent higher than last year. (iStock)
Home price growth hits 15-year high
Home price growth hits 15-year high
(iStock/Illustration by Kevin Rebong for The Real Deal)
Foreclosures and evictions could be halted for rest of 2021
Foreclosures and evictions could be halted for rest of 2021
CFPB acting director Dave Uejio (CFPB, iStock)
Mortgage lenders must prevent “tidal wave” of avoidable foreclosures: CFPB
Mortgage lenders must prevent “tidal wave” of avoidable foreclosures: CFPB
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...