JPMorgan Chase to pay $753M to foreclosure fund
JPMorgan Chase & Co. will pay $753 million into a fund for wronged borrowers as part of a federal mortgage-abuse settlement, according to a regulatory document filed Wednesday.
It is one several U.S. banks that agreed this week to pay $8.5 billion to settle charges that they wrongfully foreclosed on millions of homeowners in the wake of the 2008 financial crisis. Abuses included "robo-signing," when banks automatically signed off on foreclosures without properly reviewing documents.
Under this settlement, JPMorgan Chase will make a cash payment of $753 million into a settlement fund for distribution to qualified borrowers. It also has committed another $1.2 billion to be used for foreclosure prevention actions.
The company expects to incur a pre-tax charge of roughly $700 million in the fourth quarter related to the settlement. It will report its fourth quarter 2012 results on Jan. 16.
JPMorgan Chase's shares fell 3 cents to close at $45.47 and slipped another 6 cents in after-hours trading.