JPMorgan, feds arrive at $13B deal in MBS clash

Miami /
Nov.November 19, 2013 04:30 PM

From the New York site: JPMorgan Chase has agreed to terms of a $13 billion settlement with federal and state regulators over the bank’s sale of toxic mortgage-backed securities. The agreement, which is expected to be announced today, includes compensatory payments of $7 billion, a fine of $2 billion, and $4 billion in aid to distressed homeowners.

JPMorgan’s CEO Jamie Dimon will hire an outside monitor to oversee the distribution of the funds to homeowners. The sticking point of the deal was the amount of aid slated for these homeowners, and the U.S. Department of Justice asked the U.S. Department of Housing and Urban Development for help in the final round of talks with the bank, the Wall Street Journal reported.

About half of the aid will fund measures such as originating new mortgages for low- and moderate-income borrowers and absorbing the remaining principal owed on vacant properties that are yet to be foreclosed on, sources told the Journal. [WSJ]  – Hiten Samtani


Related Articles

arrow_forward_ios
Simon and David Reuben with St. Regis Bal Harbour (Getty, Google Maps)
Reuben Brothers takes over $132M loan backing St. Regis Bal Harbour
Reuben Brothers takes over $132M loan backing St. Regis Bal Harbour
Photo illustration of Ron DeSantis (Getty, iStock)
DeSantis announces $250M rental, mortgage assistance fund
DeSantis announces $250M rental, mortgage assistance fund
Gov. Ron DeSantis (Credit: Joe Raedle/Getty Images)
Florida extends freeze on evictions and foreclosures to July
Florida extends freeze on evictions and foreclosures to July
Governor Ron DeSantis (Credit: Eva Marie Uzcategui/Getty Images)
Florida governor extends freeze on evictions, foreclosures
Florida governor extends freeze on evictions, foreclosures
Florida Gov. Ron DeSantis (Credit: Joe Raedle/Getty Images)
SoFla prepares for flood of foreclosures and evictions after governor’s freeze
SoFla prepares for flood of foreclosures and evictions after governor’s freeze
Florida Gov. Ron DeSantis (Credit: Joe Raedle/Getty Images)
Florida governor freezes evictions and foreclosures for 45 days
Florida governor freezes evictions and foreclosures for 45 days
South Florida lenders and landlords battle new coronavirus reality
South Florida lenders and landlords battle new coronavirus reality
South Florida lenders and landlords battle new coronavirus reality
From left: Edgardo Defortuna, Stephan Burke, Ron Shuffield, Ana Bozovic, Carol Cassis, and Mark Zilbert
South Florida’s residential sales shift to virtual reality as business slows
South Florida’s residential sales shift to virtual reality as business slows
arrow_forward_ios

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

Loading...