JPMorgan to pay $5.1B to Fannie and Freddie in settlement

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