JPMorgan Chase & Co., the largest US 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 pay $753 million in cash 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.
In the fourth quarter, JPMorgan will take a $700 million pretax charge related to the settlement, according to the New York-based lender. It’s scheduled to report earnings Jan. 16.
In addition, Goldman Sachs, Morgan Stanley and two other banks may agree as soon as this week to settle claims over botched foreclosures in an accord similar to one reached with 10 other loan servicers, two people briefed on the discussions said.
The agreement would end case-by-case reviews of foreclosures under earlier accords with big mortgage servicers.