The Financial Times reports JPMorgan Chase is in the hot seat for mortgage-backed securities it sold Fannie Mae and Freddie Mac pre-crisis.
“The Federal Housing Finance Agency, a government regulator, sued JPMorgan and 17 other banks in 2011. It said the bank falsely claimed that loans backing $33bn of mortgage-backed securities complied with underwriting guidelines and that it ‘significantly overstated the ability of the borrowers to repay their mortgage loans,’” the report says.
The FHFA is demanding more than $6 billion to settle the claim.
Read more here.
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