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 email@example.com
To contact the editor responsible for this story: David Scheer at firstname.lastname@example.org