Tag Archives: JPMorgan Chase

JPMorgan Chase's $4 billion settlement with the Federal Housing Finance Agency (FHFA) reached late last week ""sets a relatively high bar"" for the 13 other banks still facing litigation from the federal agency, according to Fitch Ratings, which suggested Tuesday that some of the banks may need to increase their litigation reserves before settling. The $4 billion is about 12 percent of the original face value of the private-label mortgage-backed securities for which FHFA sought damages.

JPMorgan Chase reached agreements to resolve its mortgage-backed securities litigation with the Federal Housing Finance Agency (FHFA) and rep and warranty repurchase claims from Fannie Mae and Freddie Mac. Altogether, the bank has agreed to pay $5.1 billion to the GSEs.

The dollar volume of homes donated or sold at a discount through JPMorgan Chase's Community Revitalization Program has crossed the $250 million mark. Initiated in 2009 as an effort to help customers and communities cope with the housing crisis, the program has seen more than 5,300 properties donated or sold to nonprofit housing organizations over the last few years.

Wells Fargo and JPMorgan Chase are the first of the big banks to release their earnings summaries for the third quarter. The two reports paint a very mixed picture. Wells Fargo raked in record profits during the July-to-September period, while JPMorgan Chase reported its first-ever loss under CEO Jamie Dimon's watch as a result of a hefty one-time legal expense, which included reserves for litigation and regulatory proceedings.

FBR Capital Markets on Wednesday raised its projection for new mortgage volume in the third quarter to $400-$420 billion, largely due to more activity from special servicers as larger banks relinquish market share. FBR anticipates strong performance from these specialty servicers, partly because of their ability to effectually mine acquired portfolios for refinancing opportunities.

JPMorgan Chase's board has announced its intention to elect Linda B. Bammann and Michael A. Neal to join as directors.

According to documents filed with the ""Texas Workforce Commission (TWC) under the Worker Adjustment and Retraining Notification (WARN) Act, Chase is laying off 451 employees in its Fort Worth-based home lending office and an additional 52 employees at its mortgage banking operation in Coppell. In its filing with TWC, the layoffs represent one of ""a number of steps to align [Chase's] mortgage business support activities to the current market environment.""

A private-sector coalition that aims to hire 100,000 U.S. military veterans by 2020 has moved quickly toward its goal. 100,000 Jobs Mission announced 77,612 veterans have found employment as of the second quarter of this year due to efforts from the companies involved.

Wells Fargo reported record net income of $5.5 billion for the second quarter, up from $5.2 billion in Q1 and $4.6 billion in Q2 2012. For the first six months of the year, net income was a record $10.7 billion compared to $8.9 billion last year. Credit performance was also improved, according to chief risk officer Mike Loughlin. Credit losses were $1.2 billion in Q2 2013, a decline of $1 billion year-over-year. Meanwhile, JPMorgan reported net income of $6.5 billion for Q2, beating last year's $5.0 billion but falling just short of the first quarter.

U.S. District Judge Jed Rakoff went back on a previous decision to dismiss most of Dexia's claims against JPMorgan Chase in a $774 million suit. In reversing his decision, Rakoff noted that he didn't have the jurisdiction to grant a dismissal in the first place, citing an appeals court decision in a similar case involving American International Group (AIG) and Bank of America. Dexia filed suit in January 2012, alleging it was fraudulently convinced to purchase more than $1.6 billion of securities that went bad.