Mortgage trustees seek $4.5B JPMorgan settlement approval
Resolves claims over faulty home loans
U.S. Bank (USB) and the Bank of New York Mellon asked a New York state court judge to approve a $4.5 billion settlement with JPMorgan Chase (JPM) over investor claims of faulty home loans. Per Bloomberg:
JPMorgan made an offer to the trustees in November to settle claims relating to the underwriting and servicing of loans in 330 residential mortgage securitization trusts, as well as claims over document delivery, according to a petition filed yesterday in New York State Supreme Court in Manhattan.
The offer was negotiated by New York-based JPMorgan and a group of 21 institutional investors, including BlackRock Inc. and Pacific Investment Management Co., that held more than $24 billion, or 32 percent of the securities issued by the trusts, according to the petition.