In negotiations between the Justice Department and JPMorgan Chase regarding the bank’s mortgage practices, a $13 billion settlement is close to finalized. The deal was agreed to first in October, but the details were shaky, and the company’s concurrence was less than firm.
One detail that has been approved is the $4 billion to be given to consumers. Around $1.5 billion of that amount will aid homeowners by lowering loan payments. $300 million to $500 million will also go to homeowners as partial loan forgiveness or other methods of aid.
The rest of the money does not have a firm purpose yet, but could go towards funding new loans for home buyers with low incomes, or to pay for the destruction of foreclosed homes.
The $13 billion settlement also includes the $4 billion in compensation to Fannie Mae and Freddie Mac, which were the victims of misleading loan sales.
