JPMorgan says it’s halfway done with $4B consumer relief settlement

by MPA17 Dec 2014
JPMorgan Chase has told the monitor of the National Mortgage Settlement that it is more than halfway done with the consumer relief portion of its 2013 mortgage-securities settlement with the Justice Department.

In late 2013, JPMorgan signed a $13 billion settlement with the government to put to rest claims it sold shoddy mortgages to investors during the run-up to the financial crisis. The deal includes a $4 billion settlement with the Department of Housing and Urban Development (HUD) for customer relief.

The bank told the settlement monitor it has completed about $2.25 billion of that, according to the Wall Street Journal. The monitor, Joseph Smith, said his office still needs to validate the calculations before giving JPMorgan credit.

According to Smith’s report the bank has been credited $862 million for aid to more than 46,000 borrowers. More than 60% of the credit has gone to new lending – including to those borrowers in areas hit hardest by the real estate bust and loans to low-income borrowers The remaining 40% was given for loan forgiveness and forbearance.