JPMorgan Reaches $4.5B Mortgage Settlement
NEW YORK (TheStreet) -- JPMorgan Chase
As part of the deal, JPMorgan will make a binding offer to the investors in 330 different RMBS trusts issued by JPMorgan, Bear Stearns (acquired by JPMorgan in 2008) and Chase, according to an announcement from Gibbs & Bruns, a Houston-based law firm representing the investors.
The investors include Fannie Mae
The deal is similar in many respects to a controversial 2011 RMBS settlement for $8.5 billion involving claims brought by many of these same investors against Bank of America
The settlement over bonds stuffed with mortgages that were fraudulent or in other ways didn't meet the criteria promised when the RMBS were sold to investors, is just one of various legal disputes tied to mortgage securities sold by JPMorgan or banks it acquired.
-- Written by Dan Freed in New York.