www.huffingtonpost.com/2013/09/25/...t-mortgage_n_3991146.html
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$11 Billion Settlement, Eric Schneiderman, Fannie Mae, Freddie Mac, J.P. Morgan, JP Morgan Chase, Jamie Dimon, Jpmorgan Chase Fraud, Jpmorgan Chase Legal, Jpmorgan Chase Mortgage, Jpmorgan Chase Settlement, Business News
WASHINGTON -- Federal and state authorities are discussing an $11 billion settlement with JPMorgan Chase that would resolve numerous allegations of mortgage-related improprieties in the years before the financial crisis, according to people familiar with the ongoing negotiations.
The deal, if struck, would settle claims brought by the Federal Housing Finance Agency, the New York attorney general and end at least three separate investigations by U.S. attorneys' offices in New York, California and Pennsylvania. The potential deal would involve a $7 billion cash payment and $4 billion in mortgage modifications for troubled borrowers.
The negotiations are “developing by the hour," one person familiar with the talks said. It’s possible no deal will be struck, or that it could be much more limited and resolve only one or a few of the various probes.
The bulk of the $7 billion cash payment being discussed would go to Fannie Mae and Freddie Mac, the government-backed mortgage giants regulated by FHFA. The agency, led by Edward DeMarco, claims Fannie Mae and Freddie Mac were duped into buying junk mortgage-backed securities issued by JPMorgan and the financial companies it purchased in 2008, Bear Stearns and Washington Mutual.