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HindustanTimes Sat,19 Apr 2014

JPMorgan in $13 bn deal on US, states mortgage complaints

AFP  Washington, November 20, 2013
First Published: 01:22 IST(20/11/2013) | Last Updated: 01:23 IST(20/11/2013)

JPMorgan Chase has agreed to a $13 billion deal to settle complaints over mortgages and mortgage securities by the US government and several states, the New York attorney general said Tuesday.

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The deal includes $9 billion in payments to authorities and $4 billion in consumer relief, state Attorney General Eric Schneiderman said.

The announcement resolves a major part of a series of complaints against the bank over misstating the quality of mortgages and mortgage securities it sold ahead of the financial crisis, and complaints of mishandling the mortgages of millions of homeowners.

"This historic deal, which will bring long-overdue relief to homeowners around the country and across New York, is exactly what our working group was created to do," said Schneiderman, co-chair of the multi-state Residential Mortgage-Back Securities Working Group.

"We refused to allow systemic frauds that harmed so many New York homeowners and investors to simply be forgotten," he said in a press conference.

"And as a result we've won a major victory today in the fight to hold those who caused the financial crisis accountable."

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