According to The Wall Street Journal, a group of mortgage-bond investors are concerned about the potential impact of a pending legal settlement between JPMorgan Chase (JPM) and Attorney General Eric Holder.

The Association of Mortgage Investors sent a letter, warning its members that they could end up shouldering a significant portion of the penalties assessed as part of a finalized MBS settlement.

In the letter, which was reviewed by The Wall Street Journal, the mortgage-investor group urged the Justice Department to refrain from allowing settlements to structure a deal in a way that would allow the bank to receive credit for settling potential abuses by writing down loans in bonds held by third-party investors.

"Parties sued by the government or third-parties should not be able to settle with assets that they do not own, namely other people's money," said Chris Katopis, the investor group's executive director