Bloomberg News

JPMorgan Will Contribute $2 Billion to U.S. Home Lending Accord

January 09, 2013

JPMorgan Will Contribute $2 Billion to U.S. Home Lending Accord

A logo sits on a wall outside the offices of JPMorgan Chase & Co. in London. Photographer: Simon Dawson/Bloomberg

JPMorgan Chase & Co. (JPM:US), the largest U.S. bank, will pay borrowers $2 billion in the form of mortgage relief and direct cash payments to settle home-loan abuse claims with regulators.

The bank will make a cash payment of $753 million and set aside $1.2 billion toward foreclosure prevention efforts as part of an $8.5 billion deal with 10 banks and their regulators announced Jan. 7, JPMorgan said in a regulatory filing today.

JPMorgan will take a $700 million pretax charge in the fourth quarter related to the settlement, according to the New York-based lender. It’s scheduled to report earnings Jan. 16.

To contact the reporter on this story: Dawn Kopecki in New York at dkopecki@bloomberg.net

To contact the editor responsible for this story: David Scheer at dscheer@bloomberg.net


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