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A government regulator announced Friday it had reached $5.1 billion in settlement with JP Morgan Chase over alleged mortgage practice violations leading up to the 2008 mortgage crisis.
The Federal Housing Finance Agency, which oversees mortgage-finance companies Fannie Mae and Freddie Mac, said JP Morgan will pay $4 billion to resolve a lawsuit over allegations the bank misled the companies about the quality of mortgages they bought between 2005 and 2007. The bank will pay another $1.1 billion in a separate mortgages-related settlement.
The Wall Street Journal reported last week that the Justice Department had reached a tentative $13 billion settlement over several outstanding cases, including those with the Department of Justice, but the FHFA announced its own settlement separately Friday, which raised its cut from $4 billion to $5.1 billion. Resolution to the remaining probes, totalling another $9 million, are expected to be announced next week.
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