JPMorgan Chase & Co. settled with the Federal Housing Finance Agency (FHFA) to pay Fannie Mae and Freddie Mac a combined $5.1 billion associated with claims of alleged violations of federal and state laws in association with mortgage-backed securities the two orgs purchased from the bank along with the resolution of warranty and representation claims.
The settlement was approximately $1 billion more than anticipated.
“This is a significant step as the government and JPMorgan Chase move to address outstanding mortgage-related issues,” said FHFA Acting Director Edward J. DeMarco in a statement.
The $5.1 billion is part of what could be a record $13 billion settlement – related to investigations related to the bank’s mortgage bond sales – between a financial firm and the U.S. government.
Source: Federal Housing Finance Agency