One down, $8 billion to go.
Jamie Dimon’s JPMorgan Chase on Friday struck a $5.1 billion agreement with the Federal Housing Finance Agency to resolve the bank’s outstanding mortgage problems with the home loan lending agency.
The FHFA, which oversees mortgage companies Fannie Mae and Freddie Mac, has been eager to announce a deal ahead of a raft of other regulators led by the Department of Justice, according to sources.
The DoJ is still expected to announce a separate multi-billion dollar pact that would help it resolve outstanding mortgage-backed securities litigation with New York and California Attorneys General.
JPMorgan’s agreement with the FHFA also includes $1.1 billion tied to sour loans originated from 2000 to 2008 that Fannie and Freddie were demanding be repaid.
“Today’s settlements totaling $5.1 billion are an important step towards a broader resolution of the firm’s MBS-related matters with governmental entities, and reflect significant efforts by the Department of Justice and other federal and state governmental agencies,” JPMorgan said in a statement.
Still to be resolved are about $8 billion in claims spearheaded by the DoJ, which could be inked some time next week, sources tell The Post.
The FHFA deal likely will be folded into the DoJ’s broader, $13 billion agreement.
One big hold-up to a sweeping settlement being announced this week is the “11th hour” inclusion of the Federal Deposit Insurance Corp. in the talk, as first reported by The Post.
Dimon has set aside roughly $23 billion — $7.2 billion in the latest quarter alone — to address mounting legal and regulatory problems at this bank.