GO
Loading...

UPDATE 1-U.S. housing agency announces $5.1 bln JPMorgan deal

Friday, 25 Oct 2013 | 5:34 PM ET

(Adds comment from regulator, bank, breakdown of numbers)

Oct 25 (Reuters) - JPMorgan Chase & Co and the regulator of Fannie Mae and Freddie Mac on Friday said the bank agreed to pay $5.1 billion to settle claims that it and firms it bought misled the housing finance agencies about the quality of mortgage securities and home loans it sold them during the housing boom.

The settlement is expected to be part of a tentative $13 billion deal that the bank has reached with federal and state agencies over its mortgage bond liabilities.

In the deal, $4 billion is meant to resolve claims over mortgage securities and is expected to be part of the larger settlement. An additional $1.1 billion is meant to resolve claims about the representations JPMorgan made on single-family mortgages it sold the government-sponsored entities, the regulator, the Federal Housing Finance Agency, said.

"This is a significant step as the government and J. P. Morgan Chase move to address outstanding mortgage-related issues," FHFA Acting Director Edward DeMarco said in a statement.

The bank, the largest in the U.S., said the deal was "an important step towards a broader resolution" of the firms mortgage-related issues with government agencies.

(Reporting by David Henry in New York and Aruna Viswanatha in Washington)

  Price   Change %Change
JPM
---