JPMorgan In $4 Bln Settlement With FHFA

(RTTNews) - JPMorgan Chase & Co. (JPM) said Friday that it has reached an agreement to resolve all of its mortgage-backed securities litigation with the Federal Housing Finance Agency as conservator for Freddie Mac and Fannie Mae for $4 billion.

The settlement resolves the firm's largest MBS case and relates to about $33.8 billion of securities purchased by Fannie Mae and Freddie Mac from J.P. Morgan, Bear Stearns and Washington Mutual. JPMorgan has also simultaneously agreed to resolve Fannie Mae's and Freddie Mac's repurchase claims associated with whole loan purchases from 2000 to 2008, for $1.1 billion.

JPMorgan said Friday's settlements totaling $5.1 billion are an important step towards a broader resolution of the firm's MBS-related matters with governmental entities, and reflect significant efforts by the Department of Justice and other federal and state governmental agencies.